30 Jul

A Cassandra Follow-up

“Long-term interest rates are increasing while shorter-term rates decline.”

Dear Mr. Realist:

As I predicted, the Federal Reserve and Fed Chair Kevin Warsh are following the script I described in my most recent letter. As a consequence, inflation and Federal debt and deficits are destined to increase while the Fed Funds Rate remains range-bound and bond/commercial interest rates face growing pressures. John Authers’ Thursday commentary provides an excellent analysis that your readers may find illuminating.

Sincerely,

Your [mythical] Cassandra