Fed and ECB are stuck in a shrinking corner
“The best that we can hope for, however, is that [central banks] will be able to navigate the minefield they are in without being accused of not doing enough, of causing economic harm and of contributing to undue financial volatility. Indeed, the most likely outcome is that they will be viewed as taking measures that are deemed ineffective or, even worse, counterproductive. And it’s a dilemma that is unlikely to be resolved soon.”
USAGOLD note: A downbeat assessment from El-Erian that carries echoes of the central bank summit in Jackson Hole a couple of weeks ago. Some take the policy makers’ shrug of the shoulders approach as good reason to buy gold as a means to long-term asset preservation.
Repost from 9-11-2019