May 24, 2021

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Tug Of War

Please click here for a chart of iron ore China commodities (FE_F).

Note the following:

• In a strange way, a tug of war is erupting between the objectives of the U. S. and China regarding inflation.
• In the U. S., the Fed has gone all out to engineer inflation.
• The Fed believes that increasing inflation of 0.3 – 0.5% from the trendline will be good for the U. S.
• In our analysis, to accomplish this goal of a few basis point rise in inflation, the Fed is taking a huge gamble.