Craig Hemke – Inflation Is Still Running Hot; Transitory It Is Not
Craig Hemke, Founder and Editor of TF Metals Report, joins us to discuss the recent hot Consumer Price Index inflation reading at 6.8%, the highest level since 1982, and the odd market reactions to this data. We discuss how the higher inflation reading was met with even more bond buying driving interest rates lower and creating even more negative real rate, and yet the precious metals sector barely moved higher in this environment. Craig unpacks other periods of history with negative real rates, and contrasts how markets reacted in response to a similar macroeconomic backdrop. We wrap up with some thoughts on the forward-looking markets trying anticipate a potential acceleration in Fed QE tapering or the eventual rate hikes in 2022, and some potential geopolitical turbulence to navigate.