‘Big Short’ investor Michael Burry says the Fed isn’t trying to curb rising prices

MarketsInsider/Theron Mohamed/4-14-2022

“Burry accused the US central bank of raising interest rates and shrinking its balance sheet not to combat inflation, but to give itself room to pump up asset prices when they inevitably fall. ‘The Fed has no intention of fighting inflation,’ he tweeted on Thursday. ‘Serial half-point hikes are for getting elevation before stocks and the consumer tap out. Same with rapid-fire QT.'”

USAGOLD note: Dennis Lockhart, former president of the Atlanta branch of the Federal Reserve, is worried that policy will undershoot the situation allowing inflation to “really seep into every crack of the economy and become really deeply embedded in the psychology…” (Financial Times/Can the Fed stamp out US inflation without causing a recession?/4/14/2022)