Federal Reserve Chair Jerome Powell has affirmed his commitment to keeping interest rates low for the foreseeable future even as he expressed hope for a strong economic recovery.
Boom Bust explores how the economy is reacting to all the developments during the Covid-19 pandemic.
The United States has a massive increase in âunproductive debt,â and is facing inflation, says Michael Pento, CEO of Pento Portfolio Strategies. âThereâs nothing more misunderstood on Wall Street than inflation,â he says.Â
Pento explains that there will be a super spike in interest rates in the second quarter of 2021, âand then I believe it will all come crashing down by the third quarter.â
âThere will be a fiscal drag on the economy, the Federal Reserveâs going to make a lot of noise about tapering, itâs going to crash the stock market, itâs going to look a lot like 1987,â he says. âAnd then yields will come back down again. Lather, rinse, repeat.â
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Originally posted on https://www.rt.com/business/512979-us-stock-market-crash/?utm_source=rss&