When inflation is sticky rather than transitory, the Fed hikes interest rates as they did last week by .25%. The price of gold and the price of gold stocks, however, suggests that inflation may be stickier than imagined and those prices are headed higher. Will the stickiness last for months or for years?
Models closely monitored by MBAs working for big investment firms show that most expect the Fed to “pivot” to lower rates by early 2024, if not earlier. This reflects the expectation that inflation will give way to deflation by then — “just look at the drop in the price of oil recently!” is the word.
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