Federal Reserve Chair Jerome Powell has affirmed his dedication to maintaining rates of interest low for the foreseeable future whilst he expressed hope for a powerful financial restoration.
Growth Bust explores how the economic system is reacting to all of the developments in the course of the Covid-19 pandemic.
The US has an enormous enhance in “unproductive debt,” and is dealing with inflation, says Michael Pento, CEO of Pento Portfolio Methods. “There’s nothing extra misunderstood on Wall Road than inflation,” he says.
Pento explains that there can be an excellent spike in rates of interest within the second quarter of 2021, “after which I imagine it would all come crashing down by the third quarter.”
“There can be a fiscal drag on the economic system, the Federal Reserve’s going to make loads of noise about tapering, it’s going to crash the inventory market, it’s going to look lots like 1987,” he says. “After which yields will come again down once more. Lather, rinse, repeat.”
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