Posted on 06/07/2021 9:01:36 PM PDT by blam
Inflation is likely to persist and lead to a crisis in the years ahead, according to a warning from Deutsche Bank economists, reported CNBC.
Deutsche issued a dire warning, that is well outside the consensus from policymakers and Wall Street, that focusing on stimulus while dismissing inflation fears will prove to be a mistake if not in the near term, then in 2023 and beyond.
“The consequence of delay will be greater disruption of economic and financial activity than would otherwise be the case when the Fed does finally act,” Deutsche’s chief economist, David Folkerts-Landau, and others wrote. “In turn, this could create a significant recession and set off a chain of financial distress around the world, particularly in emerging markets.”
The analysis says that’s because the Federal Reserve, and its new framework, tolerates higher inflation for the sake of a full and inclusive recovery.
The bank further asserts that the Fed’s intention not to tighten policy until inflation shows a sustained rise will have dire impacts.
As part of its approach to inflation, and until it sees “substantial further progress” toward its inclusive goals, the Fed won’t raise interest rates or curtail its asset purchase program.
They are not near those objectives, multiple central bank officials have said.
Indicators such as the consumer price and personal consumption expenditures price indices are well above the Fed’s 2% inflation goal.
Policymakers say the current rise in inflation is temporary and will abate once supply disruptions and base effects from the early months of the coronavirus pandemic crisis wear off.
The Deutsche team disagrees, saying that aggressive stimulus and fundamental economic changes will present inflation ahead that the Fed will be ill-prepared to address.
The Deutsche position is not widely held by economists and most on Wall Street agree with the Fed’s...
(snip)
(Excerpt) Read more at newsmax.com ...
What is to stimulate? There are help wanted signs literally on every open business. Oh right... The democrat vote base.
WOO-HOO Wu-Flu!
/s
Gee, who could have possibly seen this coming?
The Fed members should be in prison for their criminal goal of causing 2% inflation.
“The Fed members should be in prison for their criminal goal of causing 2% inflation”
You know I have never understood why they are so scared of deflation. They say any spike in inflation will be transitory. Has there ever been deflation that wasn’t transitory?
Fun fact: Deutsche Bank was the single largest beneficiary of Bush II’s massive bank bailout in the closing days of his administration. Goddam german banks took U.S. taxpayers for a very expensive ride thanks to that miserable jerk.
Zugroß zum Scheitern
They did? Do you have a link?
You are welcome to prove me wrong.
If you don’t have any backup, just say so......
I don’t carry a searchable database in my head, but it is out there in mainstream economic news that german banks took the lion’s share, and the biggest german bank is DB. You don’t have to be Columbo. Yes, it’s an assertion on my part, but again, you are welcome to challenge it.
Yes, it’s an assertion on my part
That's a nice way to put it.
You sound like ‘Hans’ in Dusseldorf.
Democrats shouldn’t be allowed near a lemonade stand much less America’s economy.
You sound like you write fiction.
Perhaps I’m mixing up bailouts, there were so many back then, but one was exactly as I said. My imagination isn’t good enough to make up what’s going on.
If you have a specific example of a taxpayer bailout of a foreign bank, post it for discussion.
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