Bill Fleckenstein: The Fed Is Trapped And Unable To Fight Inflation

The Julia La Roche Show, Released on 4/11/24

Bill Fleckenstein, president and founder of Fleckenstein Capital, discusses the macro view of the world and the impact of the Federal Reserve’s monetary policies. He criticizes the Fed for its incompetence and reckless policies that have led to the creation of two huge bubbles and misallocated capital. Fleckenstein also highlights the power of the passive bid in distorting the market and the importance of understanding its effects. He believes that the stock market has become a lagging indicator and that the Fed is trapped and unable to fight inflation. Elsewhere, Fleckenstein discusses the bond market, gold, and silver. He also expresses concerns about the US national debt and the lack of fiscal responsibility.

0:00 Introduction and welcome Bill Fleckenstein
0:55 Macro view and what the Fed does really matters
4:30 The distorting effects of the passive bid
6:30 The stock market is a lagging indicator
10:45 Equity markets in a bubble or not?
13:30 End game — long end of the bond market rates rise
18:26 Inflation and the inflation psychology
23:53 The Fed’s inflation fight, Fed cutting rates would be an obvious mistake
26:30 The economy and millennials
29:49 Gold price, gold market has figured out Fed is trapped
34:44 Silver
37:04 Outlook on the U.S. and conclusion

Bill Fleckenstein is the President of Fleckenstein Capital and writes a popular column ‘Contrarian Chronicles’ for MSN Money as well as the daily Market Rap column for his website: Fleckenstein Capital. Bill has appeared at one time or another in virtually all financial media including Bloomberg, CNBC, The New York Times, MSN, Marketwatch, Barron’s and more. Bill is a highly sought after speaker, successful author of Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve and has been in the financial sector for over 25 years.

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