Thoughtful Money with Adam Taggart SPECIAL REPORT: An 'Uncertain' Fed Slows Quantitative Tightening | Axel Merk
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Mar 20, 2025 
Axel Merk, a seasoned money manager and Fed expert, shares his insights on the Federal Reserve's latest decisions regarding monetary policy. He dissects the implications of the Fed slowing down quantitative tightening amidst rising inflation forecasts. Merk critiques the Fed's historical confidence and discusses potential recession risks. The conversation dives into the recent surge in gold prices and its marketplace dynamics while highlighting the investment potential and risks in the evolving financial landscape.
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Hawkish Inaction
- The Fed's inaction on rates is hawkish, given the stagflationary environment of slowing growth and sticky inflation.
- Historically, they would ease rates in such conditions.
Stagflation Denial vs. Gold Charts
- Jerome Powell denies similarities between the current economic situation and the 1970s stagflation.
- However, comparing current gold charts with those of the early 70s reveals similarities.
Confident Positioning vs. Forward Guidance
- Powell expresses confidence in the Fed's positioning and ability to react to data, despite uncertainty.
- Merk views this as forward guidance, implying no immediate rate changes.