Hartnett Says "Fed Tolerating Higher Inflation" Target

This is a free preview of a paid episode. To hear more, visit vblgoldfix.substack.comHousekeeping: Good Morning“Crypto and Gold are at all-time highs because the market is sniffing out a Fed that's going to tolerate higher inflation, which will give them, of course, weaker policy credibility.”Summary:For The Fed to witness recent harsh inflation upticks and offer little to no pushback against it or for that matter the market’s persistent expectations of rate cuts means implies a tolerance for a higher inflation level is here.* It implies the target has been raised if not completely discarded.* It also means the Fed is worried more about recession than inflation now.The market sees this and is betting Powell has thrown in the towel on his 2% inflation target.Hartnett’s Flow Show analysis goes through the signs this is in fact happpeningHartnett’s Key Insights:Fed may be more worried about Recession than Inflation for three reasons: * because weaker Jobs implies recessionary slowdown* and because the STIRS market continues to think Fed will ease in June despite bond yields creeping higher, exploding Gold and BTC prices * Fed also not doing much talking down rate cut hopes yetTherefore: market sniffing out Fed tolerating higher inflation targets. His forward-looking indicators are now starting to point to Stagflation as the risk as a result.Charts Used: