Sage Investment Club

There Is More Inflation Complexity Ahead by Mohamed A. El-Erian

As US inflation gradually eases, the claim that today’s inflationary pressures are the result of a temporary supply shock has re-emerged. While this thesis may be comforting, it could also encourage dangerous complacency, making an already serious problem much harder to solve. CAMBRIDGE – Nearly two years into the current bout of inflation, the concept […]

The Fed's Goose That Stopped Laying Golden Eggs

U.S. inflation, which has resulted from the Federal Reserve’s excess creation of money in 2020-21, is still with us. Now, we are just starting to see another negative consequence of the Fed’s hasty response to the Covid crisis. The Federal Reserve System is currently racking up substantial losses. Source link

Fed Chair Powell Silent As Bond Markets See Recession, Rate Cuts

Often, it’s what isn’t said that deserves the most attention.  Federal Reserve Chairman Jerome Powell’s decision to sidestep the issue of inflation and rate hikes during a central banking conference in Stockholm this week, as markets bet against his previous hawkish signals, may prove as pivotal as his late August speech in Jackson Hole when he […]