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Inflation Isn’t Going Away And Investors Own The Wrong Assets | Larry McDonald on “When Markets Speak”

Forward Guidance

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Economic Disparities and the Pressure on the Fed

The economy is witnessing a significant disparity where the top 20% of the population is engaging in 'revenge travel' and 'revenge shopping' due to extra money accumulated during low rate periods, while the bottom 30% only have $400 in their checking accounts. This disparity is impacting the pressure on the Fed to cut rates, especially with inflation resurfacing. The potential rate cuts could trigger a substantial migration of capital, potentially impacting the status of the US dollar as the world's reserve currency.

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