No. of Recommendations: 2
I don’t think many are prepared for the disaster that will unfold when an idiot gets his hands on the Federal Reserve.
Is Berkshire prepared?
Krugman:
In fact, let me make a prediction: Trump may initially force the Fed to cut short-term interest rates, but quite soon long-term interest rates will go up, not down, because forward-looking investors will realize that politicized monetary policy is feeding inflation, and even a Trumpified Fed will eventually be forced to raise rates to contain the damage.
Let me acknowledge that so far markets aren’t pricing in the Turkey-style inflation that, it seems to me, is almost inevitable once Trump gets to replace Powell. As far as I can tell, TACO — Trump always chickens out — rules the narrative on inflation, just as it does on tariffs.
If very high inflation does happen, what does that do to Berkshire?
