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This is an interesting perspective that gives insight into the main risks we are hedging against in portfolios: inflation and higher interest rates. As a former member of the Federal Reserve Board, the author, Kevin Warsh, has a unique insight.
The Fed says it has the tools to stop an inflationary surge, but that type of response remains to be seen. As of now, Mr. Walsh believes that the Fed would have to tighten policy more to stop an inflationary surge.
The Fed’s Risky Fill-the-Punch-Bowl Strategy
by Kevin Warsh
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