ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
May 3, 2023 | Monetary shock with negative impacts through 2023 and 2025
Danielle Park
Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com
An April 2023 NBER paper warns that the Fed’s rapid tightening actions since 2022 were a monetary shock that has negative economic impacts for this year and next. Mind the lags. See Does Monetary Policy Matter? The Narrative Approach after 35 years; the conclusion:
“Based on the empirical estimates of the effect of previous shocks, one would expect substantial negative impacts on real GDP and inflation in 2023 and 2024.”
STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.
Danielle Park May 3rd, 2023
Posted In: Juggling Dynamite
Previous: « Republicans Fighting Biden’s Mortgage Madness