Confidence in Fed has rarely been higher
Confidence in Fed has rarely been higher
China, Germany and the Republican Party each believe they’ll be stronger if the American economy is weaker. (They are wrong, but they believe it anyway.) Of course they want the Fed to fail.
Politically, the Fed is under siege.
No, it’s not political confidence that’s abundant. What I’m talking about is the market’s confidence in the Fed. The market has never been so sure that the Fed will win the war against inflation.
Despite all the worries about the bloated balance sheet, the quantitative easing, the non-stop printing presses and the helicopter drops, despite the warnings that the Fed is locking us into a bleak future of hyperinflation, the market actually expects very tame inflation for a very long time.