Sealed as the “new debt king” DoubleLine CEO Gonzales (Jeffrey Gundlach), Friday (May 14) interviewed by Yahoo Finance, he warned the U.S. government indiscriminate issuance of money seriously disrupted the investment market, inflation may get out of control this summer, the Federal Reserve Board or have to Early end of quantitative easing (QE).
Gonzalez said, multiple rounds of economic stimulus “printing” has distorted the U.S. economy, promoting the sharp rise in U.S. housing prices over the past year, and caused a large number of U.S. workers prefer to take unemployment benefits at home, rather than return to work in the labor market, “raising lazy people The consequence of “raising lazy people” is that everyone expects more unemployment benefits.
The U.S. Consumer Price Index (CPI) for April released on the 12th rose at an annual rate of 4.2%, the highest level since September 2008; Gonzalez said that according to DoubleLine’s projection model, U.S. inflation will rise further in the coming months, and if inflation remains high, investors will become extremely worried, with very serious consequences, and the CPI does not fully reflect CPI does not fully reflect the rate of price increases, the actual situation may be even worse.
Gonzalez also said that the Federal Reserve officials have repeatedly stressed that rising inflation is only temporary in nature, this brainwashing approach is designed to keep the market from panicking; Gonzalez warned that once inflation rises sharply causing a sharp rise in long-term interest rates on U.S. debt, the U.S. national debt and deficit will increase significantly, and the U.S. stock market to bring a major impact.
Dallas Federal Reserve Bank President Kaplan (Robert Kaplan) 14 also reiterated that the Federal Reserve should be discussed as soon as possible to reduce quantitative easing (QE) issues, Kaplan for economic excesses and imbalances feel quite worried, and the U.S. housing market is particularly worrying.
Kaplan said, is paying close attention to the economic imbalance how to pass to inflation, where the imbalance in the supply of goods will affect inflation expectations, while the labor imbalance will also affect human resources costs and inflation expectations.
As the United States has made progress in the fight against the Chinese Communist Party (new crown) virus, the economy is gradually coming out of the shadows, Kaplan believes that the Federal Reserve should start discussing QE tapering, so the Open Market Committee (FOMC) should discuss matters related to the end of bond buying in advance.