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Fed President: Worried Things Are Getting Out of Control

Bretton Woods
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EDITOR NOTE: Atlanta Fed President Raphael Bostic is known for holding a moderate position between his more dovish and hawkish counterparts. So perhaps he might provide a more objective view toward the state of the economy or one that’s less objective and politically compromised? Either way, he’s worried about the possibility that inflation may somehow get stuck in a loop, systemically entrenched in the mix, meaning, not as controllable without harsh and austere measures, contrary to what Fed consensus had presented to us. The Fed’s actions, according to Bostic, rests on whether “the economy can stand on its own.” There is no “on its own” when President Biden’s multi-trillion “cash party” intervenes with the recovery process long after it’s needed. What’s the likelihood that Biden’s rescue plan may produce the exact opposite of the super boom he’s hoping to achieve? What if, instead, while getting out of control, it produces a sustained market crash, dollar collapse, or, as some experts predict, an even greater depression? Some who remain skeptical of this doom and gloom scenario were also skeptical about the likelihood of inflation, to begin with, or that somehow the price of physical gold and silver indicated the woes we’re seeing today. It’s not too late to hedge your wealth. Skepticism is important and encouraged. But it can’t rest on faith in the Fed’s own “blind faith” toward its perspectives and capabilities, lest you don’t mind risking everything constituting your wealth.

Atlanta Federal Reserve President Raphael Bostic noted on Friday that he is worried about inflation getting entrenched, as reported by Reuters.

"Right now, the dashboard of inflation is not flashing red or suggesting things are getting out of control," Bostic added. "If we see good progress and the economy can stand on its own, I'd be in favour of getting to a more normalized policy. W will want to see how this evolves over the coming months."

Market reaction

The US Dollar Index continues to inch higher and was last seen gaining 0.36% on a daily basis at 90.07.

Original post from FXStreet

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