The US Federal Reserve left rates of interest close to zero and vowed to make use of all of the instruments to assist the restoration from an financial downturn that Chairman Jerome Powell referred to as essentially the most extreme “in our lifetime.”
RT’s Growth Bust is joined by Michael Pento, the founder and president of Pento Portfolio Methods, to debate the US central financial institution’s financial coverage and its impression on the financial system.
“The Fed is now pressured to completely monetize our debt,” he says, including “Our nationwide debt is now 130 p.c of GDP. We’re trying increasingly like Greece as time goes by. We’re including to that debt $ four trillion in fiscal 2020.”
Pento continues: “By the way in which, that debt is now 1,000 p.c of our income… The Fed is just not going to have the ability to extricate itself from this downside, similar to it wasn’t capable of extricate itself out of the Nice Recession.”
He reminds that “In 2019, earlier than anybody ever heard concerning the Wuhan virus, the Fed was reducing charges thrice. So, we’re trapped on this limitless cycle of yield repression and debt monetization for a really very long time, sadly.”
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