Fed Unwinding Means Imminent Recession

Fergus Hodgson, 5 May 2017 rss iTunes SoundCloud-logo

DOWNLOAD THE MP3 • WATCH ON YOUTUBE

The Federal Reserve’s unprecedented monetary expansion for the past decade, highlighted by negative real interest rates, means only one thing: there will be consequences, and they won’t be pretty.

In fact, Peter Boockvar says “the biggest risk to markets is the Federal Reserve’s unwind of their extraordinary policy … in terms of rates and its balance sheet.” The Trump bump may have delayed the inevitable somewhat, and tax reform may push a recession back another year. However, any optimism over the new president cannot undo the damage already done.

Peter Boockvar (right) on a panel with investment giants: Peter Schiff, James Grant, and Mark Skousen — all of whom have appeared on the Gold Newsletter Podcast. (Scott Williamson)

Recommended Links

Fergus Hodgson (@FergHodgson) is an economic consultant and Gold Newsletter‘s roving editor.