Spencer Jakab
speaker
981 appearances
14 recordings
1 series
first heard Jul 2017
last heard Jun 2021
Spencer Jakab’s voice in public audio — every appearance, attributed to the second.
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Appearances
The Fed has basically come out and said that they will tolerate higher inflation.
This is something that they typically don't do.
They said that they will let inflation run hot for a while before tightening up.
If you let something run hot, sometimes it turns into a blaze and burns you.
And inflation is
notoriously difficult to control once it gets going.
They do.
And the main reason that they do is that we have seen unprecedented stimulus from the federal government and from the Fed in terms of a record budget deficit and rates being pushed very low and record levels of bond buying.
Now, Finance 101 or Economics 101 tells you that those things, combined with trade frictions, which we've also seen lately, all contribute to higher prices.
And the fact that we have not seen them and haven't seen them since the financial crisis and back then in the years after the crisis, many people got egg on their faces predicting that we would have higher inflation doesn't mean that we won't in the future.
And you do have some smart people out there saying that we had better watch out.
The ingredients are all there and the ingredients are unpredictable.
And the main reason right now, aside from all that stimulus to be concerned, is that the Fed has basically come out and said that they will tolerate higher inflation.
This is something that they typically don't do.
They said that they will let inflation run hot for a while before tightening up.
If you let something run hot, sometimes it turns into a blaze and burns you.
And inflation is notoriously difficult to control once it gets going.
Well, most investors have at least part of their allocation to bonds, whether it's longer-term or shorter-term bonds, corporate bonds or treasuries.
A typical conservative portfolio has some money in them.
But right now, the 10-year Treasury note is already an invitation to lose money.
Showing 61–80 of 981 · page 4 of 50
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