The Fed is Ignoring the Data
Graham Summers, MBA

The Fed is refusing to cut interest rates because President Trump’s proposed tariffs might trigger inflation.

Yes, this is the Fed’s thinking. They’ve even admitted that Fed staff are assuming “full retaliation” for whatever tariffs the Trump administration introduces.

What are these people smoking?

What country is going to try to retaliate against the U.S., thereby losing access to the largest pool of middle-class consumers in the world? The U.S. economy is as large as the 2nd, 3rd and 4th largest economies combined… and 75 of U.S. GDP is consumer spending.

That’s $21 TRILLION in consumer spending per year.

And yet, the Fed believes that the current trade war is only going to get worse, with other nations engaging in full retaliation to whatever the Trump administration proposes. And because of this, the Fed is worried that there might be an uptick in inflation.

Never mind that the gold standard for inflation expectations shows inflation is ~2% and trending down.

Never mind that real-time inflation measures like Truflation show inflation is actually BELOW 2%.

The Fed knows better! After all, they have 400 Economics PhDs on staff. And those people are all really smart!

This is a MAJOR screwup, and it’s only a matter of time before the Fed breaks something. When this happens, the Fed will be forced to panic ease monetary conditions triggering one of the greatest wealth building opportunities in years. 

To start receiving these kinds of actionable insights, join 56,000 readers in over 56 countries in receiving our daily market alert every weekday before the markets open (9:30AM EST).

Subscribe to Gains Pains & Capital!

Best Regards

Graham Summers, MBA

Chief Market Strategist

Phoenix Capital Research

Graham Summers, MBA is Chief Market Strategist for Phoenix Capital Research, an investment research firm based in the Washington DC-metro area.

Graham’s sterling track record and history of major predictions has made him one of the most sought after investment analysts in the world. He is one of only 20 experts in the world who are on record as predicting the 2008 Crash. Since then he has accurately predicted the EU Meltdown of 2011-2012 (locking in 73 consecutive winners during this period), Gold’s rise to $2,000 per ounce (and subsequent collapse), China’s market crash and more.

His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Fox Business, and more. His commentary is regularly featured on ZeroHedge and other online investment outlets.

 

 

gainspainscapital.com