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Can Powell drive inflation higher? Treasury traders doubtful

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Bloomberg/Liz McCormick/9-13-2020

Cartoon by Ed Stein of dollars flowing in an hour glass and investor caught in flow saying 'keep printing'“The Treasury market has set a high bar for the Federal Reserve to jump in order to recharge inflation expectations and upend a bullish tone that has surfaced since Chair Jerome Powell laid out a new plan to allow consumer prices to run hot.”

USAGOLD note: The markets are suddenly worried about the Fed’s ability to deliver on its new inflation mandate. Treasury Secretary underlined that concerned when he told CNBC yesterday that “now is not the time to worry about deficits and the Fed’s balance sheet.”  A message to Congress and a message to the Fed all in one simple declarative sentence. Spend and print officially is now the order of the day.

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