Friday, December 4, 2020

Tag: “— A Recession Has Always Followed”: Is This The Real Reason The Fed Is Sud…

“… A Recession Has Always Followed”: Is This The Real Reason The Fed Is Suddenly Panicking

0

from ZeroHedge:
“Why is the Fed so desperate to raise rates and tighten financial conditions? Why has the Fed shifted from a dovish to a hawkish bias?”

That is the question on every trader’s, analyst’s and economist’s mind in the past month. Is it because the Fed is suddenly worried it has inflated another massive equity bubble (major banks now openly warn their clients the market is in frothy territory, if not inside a bubble), or is the Fed just worried that it will fall too far behind the curve and be unable to regain control of the economy once inflation spikes, without creating a recession (in what will soon be the second longest, if weakest, economic expansion of all time).