Is The Fed Creating A Deeper Recession Than Necessary? | Axel Merk

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We still live in an era where the markets hang on every word uttered by the Federal Reserve and its chairman Jerome Powell.

Last week saw the Fed raise the Federal Funds Rate by a quarter percent, as was expected.

Then Jerome Powell spoke and the markets immediately started spiking higher, which very likely was not what he was hoping for.

For several quarters now, the Fed has been locked in a game of chicken with the markets, who expect the Fed to reverse policy substantially sooner than Jerome Powell is trying to guide the public.

Who’s like to be

proven right — the markets or the Fed?

For perspective, we welcome back one of the best Fed-watchers we know, Axel Merk, President and Chief Investment Officer of Merk Investments back to the program.

The Fed Is Causing A Deep Recession | Axel Merk

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Prepare for things to get worse from here.

That’s the simple yet direct message from Federal Reserve-watcher Axel Merk.

Axel travels in the same circles as past & current Fed leaders. And he’s quite concerned about the aggressive pace of the central bank’s interest rate hikes.

Combined now with Quantitative Tightening, Axel fears they are slowing the economy far more than needed, which will result in an unnecessarily deep & grinding recession in 2023.

Similarly, he sees a new bottom for the markets ahead in the new year, too.

So don’t get too comfortable here at year-end thinking the worst

is now behind us.

It doesn’t seem so.

Is The Fed Condemning Us To Stagflation? | Axel Merk

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Markets remain quite bruised and bat

tered as investors digest the results of last week’s Federal Reserve Open Market Committee decisions & Chairman Powell’s latest guidance.

The Fed continues talking tough about its commitment to fighting inflation. Is it willing to sacrifice the markets in this pursuit?

To discuss this, we welcome back Axel Merk, President and Chief Investment Officer of Merk Investments to the program. Axel is one of the most connected Fed-watchers we know, and he just spent time at a closed-door event with several of the top economic policymakers in the country, like former US Treasury Secretary & Director of the National Economic Council Larry Summers and James Bullard, St Louis Fed President.

We also discuss the new staglation ETF Axel and his team just launched (ticker: STGF)