The new Treasury secretary, Scott Bessent, has calmed things a bit by saying that the focus of the administration will be to keep Treasury yields – the interest paid on US government borrowing – down, rather than on what the Fed does.
So if inflation goes up initially by just a little, the Fed is likely to deem the increase 'transitory', as it did back in 2021 – though given the disastrous outcome of its complacency then it will doubtless use some other expression to excuse its inaction.
Safe and sound: The people who run the show – politicians, central bankers, top civil servants and so on – are insulated from inflation.
The people who run the show – politicians, central bankers, top civil servants and so on – are insulated from inflation.
We have to make sure our savings are protected, which means a spread of investments including owning our homes, putting spare cash into equity-linked investments, building up a pension – all the things the personal finance pages of this newspaper urge us to do.
