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 “unproductive debt,” and is facing inflation, says Michael Pento, CEO of Pento Portfolio Strategies. “There’s nothing more misunderstood on Wall Street than inflation,” he says. 

Pento explains that there will be a super spike in interest rates in the second quarter of 2021, “and then I believe it will all come crashing down by the third quarter.”

“There will be a fiscal drag on the economy, the Federal Reserve’s going to make a lot of noise about tapering, it’s going to crash the stock market, it’s going to look a lot like 1987,” he says. “And then yields will come back down again. Lather, rinse, repeat.”

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Originally posted on https://www.rt.com/business/512979-us-stock-market-crash/?utm_source=rss&