Peter Boockvar: The Fed Has Overdosed on Social Justice
Fergus Hodgson, 22 September 2016 
The Federal Reserve’s Open Market Committee has chosen to resist raising the federal-funds rate, the base interest rate in the U.S. economy. Peter Boockvar delivers the skinny on how these decisions are always influenced by politics, and why a corrective recession is inevitable and will only worsen with time.
Boockvar is managing director and chief market analyst for the Lindsey Group LLC and co-chief investment officer for Bookmark Advisors, and he is building his own blog-style publication, the Boock Report. In particular, he makes the case that Fed officials should not be relied on for market savvy: “They only, obviously, discover
Further, he says that the political inclination of those at the helm of the Fed is contrary to any Paul Volcker-style tightening: “[Yellen] believes in social justice.… These are all political animals who don’t want to be blamed for a recession.… That’s the problem.… You have to have somebody who … has a longer-term perspective.”
Boockvar, who will speak at the upcoming New Orleans Investment Conference (October 26-29), is also a CNBC contributor, so you can also watch a clip of him from this morning.
Recommended Links
- Federal Reserve System monetary-policy press release, September 21, 2016.
- “The Canary in the 35-Year Bond Bull Market Is Singing,” by Peter Boockvar with CNBC.
- “Japan’s Lost Decade: The Dangers of Deficit Spending,” by Fergus Hodgson in the Cleveland Plain Dealer.
- “What Is Social Justice?” by Jonah Goldberg of the American Enterprise Institute.
Fergus Hodgson (@FergHodgson) is an economic consultant and Gold Newsletter‘s digital-media director.