Inflation complacency

Credit Bubble Bulletin/Doug Noland/1-20-2023

Artist rendering of two doves, Asian motif“Despite all the talk, previous and ongoing, this Federal Reserve is soft on inflation. Not as eager as Wall Street to declare mission accomplished, Fed officials are nonetheless signaling that their work is near completion”…It was important that central bankers pushed back against the view that QE liquidity backstops would be restarted as necessary to quash incipient market instability. Powell was hawkish during his November 1st post-meeting press conference. But Fed hawkish resolve soon dissipated. Now, messaging has become so frayed that markets don’t take hawkish resolve seriously. The paramount message that the Fed would push back against looser market conditions is MIA.”

USAGOLD note: We agree with Noland’s assessment. After all is said and done, the Fed at its core is dovish.

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