0 sats \ 4 replies \ @siggy47 OP 13 Feb \ parent \ on: That stubborn, pesky inflation econ
So how would you interpret this, Tom?
we have to assume that the Fed has all the data at its disposal, i.e. it also knows the truflation interpretation. but it is currently not in its interest to let the stock market run too hot, although in my opinion this is almost inevitable for the next few months. therefore, data is probably rather overstated at the moment. then all this has to be seen in the context of currency competition with the eurozone. we have a chicken game ahead of us here: whoever lowers first, loses.
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I guess we also have to take into account the building pressure regarding the presidential election, though.
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as far as the biden administration and the exorbitant debt behavior is concerned, i'm not sure exactly what role J Powell and the Fed are playing here. so far, he has made life difficult for biden in any case. so far, Janet yellen has also been lucky that the European Central Bank in particular has made massive purchases of us government bonds in order to keep interest rates lower in the US and prevent capital flight from the eurozone.
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Food is the best gauge of inflation
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