The Federal Reserve confronts an almost impossible task

BloombergOpinion/Gary Shilling

Repost from 10-7-2021

image of two pencils with incscription 'between a rock and a hard place'“The Federal Reserve is planning to tighten credit even as forecasts call for U.S. economic growth to slow and the recent high inflation rates to recede. With just the smallest of missteps, the central bank risks either overkill, or a further loss in credibility.”

USAGOLD note: Shilling says the Fed today looks like “an arm of the federal government.” He says we now have a “Powell put” just like we had the Greenspan, Bernanke and Yellen puts. In short, he sees the Fed as cutting short any tapering policy long before it can cause harm in financial markets. Such positioning is likely to play well in the gold market.


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