Wealthion, Released on 12/16/21

The Federal Reserve is finally declaring war on inflation. On Wednesday Dec 15, Fed Chair Jerome Powell announced that — the fight the inflation it has played a central role in creating — the Federal Reserve will accelerate its tapering program and likely hike interest rates 3x in 2022. That’s a 180-degree reversal of the Fed’s rampant bubble-blowing policies to date. While markets are reacting favorably so far, can they continue to do so? The key drivers of asset prices over the past decade – $trillions in stimulus, buybacks funded by dirt-cheap debt & low inflation — are all coming to an end. Which is why Steen Jakobsen, manager of $billions in client assets at Saxo Bank, predicts 2022 will be a much more volatile year than investors are used to. And we should listen to him, as one year ago on this program he boldly predicted we’d see a surge in both inflation and commodity prices in 2021 — and boy, was he ever right. In this new interview, Steen shares his macro outlook and top predictions for 2022 (spoiler alert: he expects inflation to run even hotter next year…)

Part 1 (part 2 below)

Part 2

Steen Jakobsen serves as Chief Investment Officer of Saxo Bank. As CIO he focuses on delivering asset allocation strategies and analysis of the overall macroeconomic and political landscape. As head of the SaxoStrats team, Saxo Bank’s in-house team of experts, he is responsible for all research including Quarterly Outlooks and was the founder of Saxo Bank’s renowned Outrageous Predictions. Prior to joining Saxo Bank, he worked with Swiss Bank Corp, Citibank, Chase Manhattan, UBS and served as Global Head of Trading, FX and Options at Christiania (now Nordea). Jakobsen’s approach to trading and investing is thought-provoking and not afraid to counter consensus. This frequently sparks debate among the global market community. On a daily basis Jakobsen and his team conduct research across asset classes, covering major macroeconomic developments, market moves, political events and Central Bank policies. With more than 30 years of experience, Jakobsen regularly appears as a guest host on CNBC and Bloomberg News. Steen Jakobsen graduated University of Copenhagen in 1989 with a MSc in Economics.

Adam Taggart is the President and Co-Founder of Peak Prosperity. He wears many hats, but his basic job is to handle the business side of things so that his fellow co-founder, Chris Martenson, is free to think and write. Adam is an experienced Silicon Valley internet executive and Stanford MBA. Prior to partnering with Chris (Adam was General Manager of our earlier site, ChrisMartenson.com), he was a Vice President at Yahoo!, a company he served for nine years. Before that, he did the ‘startup thing’ (mySimon.com, sold to CNET in 2001). As a fresh-faced graduate from Brown University in the early 1990s, Adam got a first-hand look at all that was broken with Wall Street as an investment banking analyst for Merrill Lynch. Most importantly, he’s a devoted husband and dad.

  economy, Fed, financial markets, inflation, Steen Jakobsen, taper