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US inflation fears mount as the Fed 'monetises' Joe Biden's deficits


US inflation fears mount as the Fed monetises Joe Biden s deficits  
US central bank was slow to realise that deflation had turned to reflation after Second World War and is set to make the same mistake
7 May 2021 • 5:30pm
The US Federal Reserve and Treasury are repeating one of the most disturbing episodes of the 1940s and risk stoking a destructive inflationary boom, a leading monetary watchdog has warned.
The Centre for Financial Stability (CFS) in New York says US money supply data is flashing a red alert and that excess reserves in the banking sector threaten to set off an “explosion of lending” as the recovery accelerates. The Fed is riding a tiger by the tail and may have great difficulty extricating itself from a torrid monetary experiment that is reaching its limits. ....

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