Why Won’t the Fed Tighten? Charlie Dreifus in Barron’s—Royce
article 10-26-2021

Why Won’t the Fed Tighten? Charlie Dreifus in Barron’s

PM Charlie Dreifus's commentary on Fed moves regarding inflation was featured in Barron’s.


PM Charlie Dreifus’s “Third Quarter Letter” was highlighted in a Barron’s article titled “Inflation Is as Transitory as a T. Rex—and Just as Destructive” where he opines that the Fed is worried about making a policy mistake. Charlie’s “Why Won’t the Fed Tighten?” feature is the third commentary in the article.

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Charlie said that Fed Chair Powell’s belief that sizable slack is still available despite the pandemic, closed schools, and extended unemployment benefits is a “big bet.” He also stated that too few unemployed people can risk resolving the shortages, which would cause inflation to continue.

“Interestingly,” Charlie said, “Powell himself said that central banks have always faced the problems of distinguishing transitory inflation spikes from more troublesome developments. It is clear the Fed has a different test for raising rates than it has for tapering QE.”

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Learn more about Charlie Dreifus.

Important Disclosure Information

Mr. Dreifus’s thoughts and opinions concerning the stock market are solely their own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)



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