The biggest threat to Powell’s job security is inflation. He must make a choice between Main Street and Wall Street. With push coming to shove, he’s sacrificing the stock market to bring inflation down.
The slowing of the agency’s massive money printer has already caused the broader stock market to, ahem, drop. But the real capital cleanup is starting now. The Fed is supposed to remove $1 or $2 trillion from its balance sheet at the rate of $95 billion a month!
How do we think that’ll go? (Hint: Not well. The S&P is already down nearly 20% year-to-date!)
Which is why we should seek out inflation-friendly dividends. Such as…
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