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Understanding the Fed

Think of the Fed as a determined physician. The patient is our economy. The sickness is inflation. Left unaddressed, the consequence of the disease is full-blown recession. If our present inflation spike is a gradual blood letting, the Fed intends to cauterise the wound with interest hikes.  One thing has become clear, the Fed is more interested in the danger of creeping inflation than the pain of rate hikes.

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Erik Weir