How the Fed’s Low Rates Became an Addiction

Fergus Hodgson, July 10, 2019

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A key tenet of central banking around the world is the dogma that deflation impedes economic growth and must be avoided at all costs.

Peter Boockvar, chief investment officer with Bleakly Advisory Group and editor of the Boock Report, is a prominent dissenter. He points out inflation targets make no economic sense until you consider who benefits from them.

Wall Street has captured the Federal Reserve, he argues, which cannot abandon loose monetary policy for fear of upsetting the status quo. However, perpetual low rates are no longer incentivizing new economic behavior, and a painful but necessary market correction will come.

The Federal Reserve president is under intense political pressure to cut interest rates. (Wikimedia)

Recommended Links

• Connect with Peter on Twitter and visit the Boock Report.
• Watch his appearances on CNBC.
• “Lagarde Set for October Confirmation as Next ECB President,” Bloomberg News.
• “Too Many Investors Foolishly Ignoring Market Risks, Peter Boockvar Warns,” CNBC.
• “Defiant Fed Boss Says Trump Won’t Make Him Quit,” BBC.

If You Liked This Episode

• “Brace Yourself for Macro Turbulence,” Gold Newsletter Podcast.
• “Peter Boockvar: The Fed Has Overdosed on Social Justice,” Gold Newsletter Podcast.
• “A Bubble Like Never Before,” Gold Newsletter Podcast.
• “Peter Schiff: The Fed Cannot Save Us,” Gold Newsletter Podcast.

Fergus Hodgson is Gold Newsletter’s roving editor. Follow him on Twitter and Facebook.