Veteran trader Peter Brandt has urged the U.S. Federal Reserve to stay hawkish and increase interest rates another 100 basis points to protect the nation’s wealth. He stressed that there is nothing more destructive to wealth than inflation, emphasizing that the Fed “must keep their feet to the floorboard to prevent a re-occurrence of inflationary pressures.”
Peter Brandt’s Advice for the Federal Reserve
Veteran trader Peter Brandt has urged the Federal Reserve to remain hawkish and increase interest rates by another 100 basis points. Brandt has been a futures and FX career trader since 1975. He is a chartist and the author of the Factor Report. He trades a variety of markets, including Dow futures, bonds, corn, crude oil, European wheat, Osaka Dow, U.S. dollar, and sugar.
“The U.S. Fed was negligent for not aggressively raising rates in early 2021,” he tweeted Thursday. “Traders knew this, but the Ph.D.s had their heads up their butts.” He added: “But now, I congratulate the Fed as it wants to remain hawkish. The market is concerned about unemployment and possible recession. Those are the least of our worries.”
Noting that “higher unemployment is the least of our worries,” Brandt opined:
There is NOTHING more destructive to wealth than inflation. The Fed must keep their feet to the floorboard to prevent a re-occurrence of inflationary pressures. While the Fed was asleep at the switch in 2021, increasing rates another 100 basis points would do wonders to protect the nation’s wealth.
In March, Brandt tweeted that people who criticized the Federal Reserve for risking a recession because of rate hikes “know not of what they speak.” He believes that a recession would be beneficial in the long term, claiming that “Only those who have lived with rampant inflation (including U.S. in 1970s) can truly understand the destructive impact on wealth of inflation.”
Emphasizing that “The Fed should be slammed” for not raising interest rates by 300 basis points in early 2022, he stressed:
The damage to personal wealth because of inflation is far more dangerous than a recession.
The Federal Reserve paused raising interest rates during its Federal Open Market Committee (FOMC) meeting in June after 10 consecutive rate increases. Fed Chair Jerome Powell has signaled more rate hikes this year but at a “moderate pace.”
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