Dollar slides as bond market signals rising inflation angst

Financial Times/ Adam Samson and Colby Smith/8-28-2020

Artist rendering of two doves, Asian motif“The dollar retreated and a key portion of the US government bond market flashed inflation warning signs on Friday amid concern that the Federal Reserve’s new policy framework could erode the appeal of US assets. … Jan Hatzius, chief US economist at Goldman Sachs, described the Fed’s new framework as ‘a significant dovish long-term shift.'”

USAGOLD note:  As we predicted here last week, we are going to get a lot of feedback on all facets of this issue over the coming weeks. We will post links to what we consider to be relevant analysis and reporting without regard to the possible outcomes – inflation, deflation and all the hybrids in between.  Gold, we emphasize, has a history of protecting against any and all (and no matter in which order they arrive). To wit, the article linked immediately below takes the opposite tack. It tells of a financial marketplace skeptical of the Fed’s ability to creat inflation.

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