Nouriel Roubini

The Fed will "wimp out" and postpone finishing its taper and raising interest rates in the face of stagflation (inferred window about one year, to end-2022).

“They are going to postpone any finishing of tapering or raising rates.”

Said on

13 October 2021 · Bloomberg Television interview, reported by Chief Investment Officer (ai-cio.com); he also said "They are going to wimp out"

Source

The Fed Will ‘Wimp Out’ on Tightening, Roubini Predicts · Chief Investment Officer (ai-cio.com)

Should come true

No date given

How sure they sounded

They are going to

Categories

EconomyMarkets

Importance

3 of 5 · US monetary policy path matters to US and global markets.

Outcome

Inaccurate

Inferred window: about a year. Instead of postponing, the Fed doubled the pace of tapering in December 2021, ended asset purchases in March 2022 and began raising rates that month, then hiked by 425 basis points during 2022.

Evidence:

• https://www.federalreserve.gov/newsevents/pressreleases/monetary20211215a.htm
• https://www.federalreserve.gov/newsevents/pressreleases/monetary20220316a.htm