Below are some of the most interesting articles, quotes and charts I came across this week. Click here to subscribe to our free weekly newsletter and get this post delivered to your inbox each Saturday morning.
Inflation is a choice.
The inflation we choose: read Jim Grant's speech given at Strategas' 17th annual Macro Conference
Click here for the free article:https://t.co/3BsZY6j9QE
— GRANT'S (@GrantsPub) April 17, 2024
Despite the fact that it is still a long way from the Fed’s target and going in the wrong direction…
'A Long Way From 2% And Going In The Wrong Direction' https://t.co/GdYV9Ir7BI via @SoberLook pic.twitter.com/eh2VLA7Wk3
— Jesse Felder (@jessefelder) April 15, 2024
…the central bank is still in no hurry to try to tighten financial conditions.
'Financial conditions are now looser by the Chicago Fed's own metric than at the beginning of 2022, when rates were effectively at zero and the Fed was still officially saying that inflation was transitory.' https://t.co/sDfWNEJtb2 pic.twitter.com/Q8LQMZy3Ot
— Jesse Felder (@jessefelder) April 19, 2024
Perhaps this has something to do with it…
'The IMF has warned the US that its massive fiscal deficits have stoked inflation and pose "significant risks" for the global economy.' https://t.co/Hc0ahyc03Y pic.twitter.com/KBxikTA1Hw
— Jesse Felder (@jessefelder) April 17, 2024
…which would explain the recent action in the gold price.
'The Fed faces an invidious choice: stay the course against inflation at the risk of a US funding crisis/banking crisis/recession ending in a return to QE and fiscal dominance; or cut rates before inflation is under control ending in fiscal dominance.' https://t.co/qyTIybAbAx pic.twitter.com/16mLqQiH4O
— Jesse Felder (@jessefelder) April 17, 2024
