Fed faces choices as challenging as any since the 1970s

Financial Times/Bob Prince-Bridgewater Associates/2-2-2022

“In other words, a self-reinforcing inflation cycle is building. We are now facing the greatest potential for a sustained rise in inflation in decades.”

USAGOLD note: Prince goes on to say that the only way the Fed can stimulate is via the printing press coupled with fiscal spending (read large deficits). In short, the same path we’ve been on since the pandemic began. In the meantime, he sees the Fed as moving “too little and too slowly” on the tightening front. Prince’s co-chief investment office at Bridgewater, Ray Dalio, has consistently pushed the “cash is trash” theme in the public venue over the past few years and recommended gold as a viable alternative.