themarketNZZ/Stefan Gerlach/3-22-2023
“Looking ahead, there is a risk that weaknesses in the financial system – often undetected until it is too late – will prevent central banks from managing policy as they are used to. One consequence will be worsened inflation control as central banks cannot respond to price pressures as they used to. Reduced monetary control and the larger swings in inflation it causes are likely to beget greater swings in asset prices. Things do not look good for central bankers and financial markets.”
USAGOLD note: Generally speaking Gerlach sees much uncertainty ahead, as indicated in the quote above and explores some of the challenges facing the Fed and other central banks. He is the chief economist at EFG Bank in Zurich.
