Hathaway: ‘Fed is likely to cave in and pivot probably before the end of summer.’

Sprott/Ted Oakley interview of John Hathaway/6-15-2022

“I had a call the other day with our mutual friend Lacy Hunt of Hoisington Management. And as you know, Lacy is an expert on these matters, monetary policy. And his view — and this has been my view, but coming from Lacy with his credentials — I think strengthens the point, is that there’s been so much liquidity created over the last couple of years between the growth of M2 and handouts to consumers during the pandemic, easy fiscal policy, that we have built up such an amount of liquidity that may take two years to get back to trendline. I think in the world of politics, two years is like an eternity, and the ability to keep the hand on a hawkish policy isn’t there. I am in the camp that the Fed is likely to cave in and pivot probably before the end of the summer.”

USAGOLD note: The Lacy Hunt/John Hathaway interpretation of where we are headed sounds very much like conditions in 2008-2009, just before gold made its historic run from $725 to record highs at the time near $1900 (Q4, 2011). Hathaway sees new highs in the offing for gold around the $2200 mark. Not sure we agree with the end-of-summer pivot prediction but pass it along for your review just the same.

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