Extraordinarily loose fiscal policy has flooded the world with dollars, writes @…
💸Extraordinarily loose fiscal policy has flooded the world with dollars, writes @bloombergopinion’s Richard Cookson.
Federal Reserve monetary policy at the moment is absurd. Deeply negative real rates are unjustifiable in an economy running as hot as America’s. All they are doing is fostering excessive speculation, as evidenced by the stock and housing markets.
The longer this inflation surge lasts — and Cookson’s pretty certain it will last, albeit probably not quite so dramatically — the more pressure builds on the Fed.
Are economic conditions likely to favor the U.S. over its trading partners in coming months? Tap the link in our bio to read Cookson’s prediction.