50 min listen
Is Recession the Only Answer to Inflation?
Is Recession the Only Answer to Inflation?
ratings:
Length:
34 minutes
Released:
Mar 29, 2022
Format:
Podcast episode
Description
As Jared Dillian puts it, when the prices of things we need are going higher and the prices of things we want are going lower, “it creates economic misery.” Things we need include fossil fuels and agricultural commodities. Things we want include stocks and bonds. In 2022, with stock and bond prices falling and commodity prices rising, wealth has evaporated, and the cost of living has increased. And the thing is, to seriously take on rising prices, the Federal Reserve is going to have to accelerate its monetary tightening cycle. “In order to stop inflation,” writes Dillian, “the Fed will have to engineer a recession.” We’re starting to see indications from sections of the yield curve that a downturn is imminent – for example, the yield on the five-year U.S. Treasury note exceeded the yield on the 30-year bond earlier today. Stocks, meanwhile, have enjoyed a two-week rally. Is there a way out for the Fed that doesn’t include recession? Dillian, author of The Daily Dirtnap, joins Real Vision’s Maggie Lake for today’s Daily Briefing to talk about the Fed, interest rates, economic misery, and recession. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3IMaiNH
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Released:
Mar 29, 2022
Format:
Podcast episode
Titles in the series (100)
Adventures in Finance 4 - Analyzing Cyclical Market Behavior: Understand how to leverage financial cycles & forecast future markets with veteran investor Robin Griffiths. Also on this week, Brent Johnson, CEO of Santiago Capital, tells us his misjudgments’ on gold and being a true contrarian. by Real Vision Daily Briefing: Finance & Investing