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Ed Dowd Warns "Deflationary Scare" Will Prompt Fed Panicwww.zerohedge.com/markets/gold-money-good-ed-dowd-warns-deflationary-scare-will-prompt-fed-panic
507 sats \ 3 comments \ @siggy47 9h econ
Inflation is going to be coming down. Chairman Powell is dead-ass wrong. Tariffs are actually deflationary, and he’s holding rates higher for longer.
That is going to end up being a big policy error. We think interest rates have peaked for the year...
We think the Fed will be forced to cut rates when the hard data comes in the wrong way.”
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345 sats \ 1 reply \ @justin_shocknet 8h
Wouldn't count on it, remember that Trump installed Powell and everything is WWE levels of fake.
Leaving rates where they are is doing 2 things:
  • A larger percentage of "new" money goes to savers when interest is paid on treasuries, not to imported garbage financed on a HELOC
  • As other CB's have to cut rates, because their economies suck without the US subsidizing them, the higher relative yield on our debt contributes to a dollar funding squeeze "dollar milkshake" bubbling underneath (US deals with its own sovereign debt crisis by making it a world-wide problem)
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17 sats \ 0 replies \ @optimism 5h
I love this take, especially:
US deals with its own sovereign debt crisis by making it a world-wide problem
This is why for example China is so eager to denominate contracts in anything but USD; they don't have any other choice than to accept any problem the US throws at them as their own if they don't succeed in that move.
PS: I'm considering building a filter on zerohedge like /Authored\sby.*\svia\s.*/ because this post too feels like "Tyler Durden" is making too many deals with internet marketer scammers; the article feels much like what i just described in #1015588, including the PDF download link at the bottom.
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221 sats \ 0 replies \ @Undisciplined 8h
We'll see. So far, we've had both tariffs and rising prices.
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