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Fascinating interview in this week’s Barron’s with veteran money manager Richard Bernstein. Didn’t care much for him when he made a few appearances on the old Wall Street Week with Rukeyser show near the end of Lou’s long run. But seems sharper / more introspective now.
“The Fed is so far behind inflation that I believe that maybe we just don't land. Maybe we'll slow the real economy, but not the nominal economy.”
Bernstein feels the Fed’s target rate is 5 or 6% behind what’s needed to curb inflation. By “not landing”, he means the economy slows for a while, dampening inflation temporarily, but not halting the upward spiral in the years ahead. Dunno. But ISTM Bernstein’s take is right in line with numerous other Wall Street veteran observers including Larry Summers (This week’s Bloomberg Wall Street Week) and Randal Forsyth’s sources (voiced in his Up & Down Wall Street column in the same issue of Barron’s) A pattern of thought emerging on this point whether correct or incorrect.
This until the Fed OPEN MOUTH Committee people start talking again.
Fed’s Kashkari (Minneapolis) on Sunday:
“We are committed to bringing inflation down and we’re going to do what we need to do,” he told CBS’s “Face the Nation” in an interview on Sunday. “We are a long way away from achieving an economy that is back at 2% inflation, and that’s where we need to get to.”
Futures down slightly Sunday night. Did the soaring stock market get their attention last week?
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https://theovershoot.co/p/is-the-2022h1-gdp-declinefake
Fascinating interview in this week’s Barron’s with veteran money manager Richard Bernstein. Didn’t care much for him when he made a few appearances on the old Wall Street Week with Rukeyser show near the end of Lou’s long run. But seems sharper / more introspective now.
“The Fed is so far behind inflation that I believe that maybe we just don't land. Maybe we'll slow the real economy, but not the nominal economy.”
Bernstein feels the Fed’s target rate is 5 or 6% behind what’s needed to curb inflation. By “not landing”, he means the economy slows for a while, dampening inflation temporarily, but not halting the upward spiral in the years ahead. Dunno. But ISTM Bernstein’s take is right in line with numerous other Wall Street veteran observers including Larry Summers (This week’s Bloomberg Wall Street Week) and Randal Forsyth’s sources (voiced in his Up & Down Wall Street column in the same issue of Barron’s) A pattern of thought emerging on this point whether correct or incorrect.
“We are committed to bringing inflation down and we’re going to do what we need to do,” he told CBS’s “Face the Nation” in an interview on Sunday. “We are a long way away from achieving an economy that is back at 2% inflation, and that’s where we need to get to.”
Futures down slightly Sunday night. Did the soaring stock market get their attention last week?