Oil Hits $133; Fed Signals Rate Cut Pause

The two are linked because the Fed’s loose monetary policy has helped make the dollar so weak that it takes 133 of them to buy a barrel of oil. Global demand hasn’t helped, either. Despite acknowledging a slowing economy by cutting their growth forecast, the Fed also signaled they’re going to stop cutting the Federal Funds rate. That’s good news, but not enough to keep the specter of inflation at bay. At some point pretty soon, they’re going to have to start tightening.

Watch those inflation and unemployment numbers rise, while growth drops. It’s called stagflation. And it’s going to be ugly.

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