Jim Grant, author of Grant’s Interest Rate Observer, discusses the Fed’s impact on the market and the danger of falling back on negative rates.
Jim Grant, author of Grant’s Interest Rate Observer, explains why the Fed could pursue more radical measures.
Yellen made her case before Congress on Wednesday, but closely-watched interest rates expert Jim grant, thinks the Fed’s outlook is wrong.
Meanwhile, ValueWalk Contributo Dr . Brad Cornell says
Central Banks: Show Me the Inflation!
The Fed rightly sets its goal for inflation at 2%. Positive inflation has a number of benefits. Most importantly, it allows for more flexible monetary policy by opening the door to negative real rates to stimulate the economy. Furthermore, price increases can have a positive impact on sentiment. For years, the Fed and other central banks have espoused this target but where is the inflation? In the U.S. the CPI rose less than 1% last year. In Japan, prices actually feel. In the countries of Northern Europe there is fear of deflation. So if the central banks maintain these targets, I say, “show me the inflation.”
