The central bank horror story

Financial Times/John Plender/1-2-2023

“For the moment, a standard market view is that the central banks’ ‘tighter for longer’ mantra will keep bond yields rising and equities falling. But the big question is whether, in the event of a funding crisis, central banks will feel obliged once again to return to asset buying to prop up markets and financial institutions, thereby weakening their anti-inflationary stance.”

USAGOLD note: Some refreshingly clear thinking from Mr. Plender…… We have suggested for months that a change of course at the Fed is more likely to come the result of another credit crisis than a slowing economy.

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