Gundlach is wrong. The fed was facing a problem of too low interest rates and too low inflation prior to the pandemic. "Ironically, the problem we need to solve these days is the risk of inflation that is persistently too low, rather than too high." Monetary Policy Strategies for a Low-Neutral-Interest-Rate World November 30, 2018 John Williams
From 10% inflation to 3% inflation. What's the issue, Chairman? Prices are up 12% to 20% since the pandemic. It's all about measurement over time. We can not argue that AMERICANS ON A fixed income need a 15% COLA. A rate cut would benefit the economy.
Well Jefferey’s big mistake was having confidence in the Fed to begin with. They don’t exactly have a great track record for not running the entire economy off of a cliff.
Scott is really good at what he does, but why why does he keep putting on guys who have been nothing but consistently wrong. For months Gundlach has been critizeing the Fed from both sides. I can't remember his last decent observation.
Just a reminder: over the last 60 years the 10 yr T-note averaged 5.9% and the average inflation rate was 3.8%. So even with the higher prints we've seen we are back down below the averages. We are basically back to normal. It just doesn't feel that way when "easy" was all you've ever known coming out of the Bush housing recession.
@@CG-dd9tb I choose 60 years because I was 12 years old and first became aware of inflation. Mom worked on Wall st and when I wanted to invest my Bar Mitzvah money she started educating me. You can choose whatever time period you want. Try 100 years and you'll pretty much see the same numbers. The main thing I wanted to capture was the inflation through the 70s and 80s. A period that most boomers are very familiar with and had to live through. But you choose. I wasn't trying to build a narrative but just give youngsters like yourself a little context. Interesting the only other person I've heard do this was Karen Finerman on Fast Money last night. But I've been saying this for months now. We are almost back to normal and all and all the Fed did a great job. Only mistake I never hear anyone mention is that they could have taken their foot off the gas right after all of Biden's bipartisan fiscal spending programs passed into law. There is now over 3 trillion in the pipeline and my guess will carry the economy for the next 10-15 years letting the Fed off the hook. Had they done that when it passed inflation rates probably would not have gotten quite as high as they did.
Nathan I found a link to the interview with Jeff Gundlach. Also I found a link to transcripts of comments from the Fed chairman. I sent that to you via email. Best Harry
It appears Jeffrey does not have any convictions as he used to have. He used to be so affirmative about upcoming recession and rate cut, and he has been proven wrong.
