In this week's Off The Cuff podcast, Chris and Axel Merk discuss:
- Powell's Non-Message
- He's trying to be as boring as possible to keep the markets placid
- Rising Inflation
- We may quickly go from “too little” inflation to “too much”
- Good Times?
- Many of the metrics the Fed looks at are still green
- The Boeing Crash & Energy
- Why one is related to the other
Fresh off his own reaction to Jerome Powell's appearance on 60 Minutes, Chris sits down with Fed watcher Axel Merk to hear his seasoned perspective on the central bank's future moves:
I see inflationary pressures rising. Wage growth, in particular is over 3%, according to every metric. That's not my words. Those are Powell's words.
He just doesn't think it's going to be a problem. At some point, we're not going to have people coming from the sidelines anymore. Then, it is going to be a problem. Then, it's going to be late to do something about it. Powell is not concerned about that at all.
That's the sort of thing that I'm more concerned about. Also, if you fast forward to the end of this year: Unless oil prices plunge, the year-over-year comparisons are going to show higher oil prices.
With that, inflation expectations are often highly correlated with that.
by carl