Too many indicators are flashing red to avoid a recession, noted Ronald-Peter Stoferle, Managing Partner, Incrementum AG.
Last week Stoferle spoke to Kitco Mining at Deutsche Goldmesse in Frankfurt. Stoferle is author of the ‘In Gold We Trust’ report.
The Fed has raised rates more sharply this year than at any time since the 1980s, notes Reuters. The U.S. dollar is up sharply against every major currency.
Due to the Fed’s aggressive actions, Stoferle said the Fed appears to be winning the fight with inflation, but at the cost of the economy.
Stoferle pointed to the Michigan Consumer Price Index. In the last print the index was up 1.3 points, low by historical standards. The data was consistent with a recession outcome.
“A recession is now basically our base case,” said Stoferle. “I just don’t see a soft landing happening. The last soft landing that we saw they made a movie about it called ‘Sully.'”
Kitco Mining’s coverage of Deutsche Goldmesse was sponsored by Faraday Copper.
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