Fed Unwinding Means Imminent Recession

Fergus Hodgson, 5 May 2017

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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

• Boock Report. Our listeners have a discount available to them, up to 20 percent off the regular subscription price. The coupon codes are the following:
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• “The Fed Wants to Hike in June” by Peter Boockvar.
• The Real Crash: America’s Coming Bankruptcy How to Save Yourself and Your Country by Peter Schiff.
• US Bureau of Economic Analysis: National Data.

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