Societe Generale strategist Dylan Grice is concerned that as a result of the Federal Reserve’s ongoing quantitative easing programs, all scenarios going forward lead to inflation in the United States.
Grice described to us his biggest fear about QE3:
Before you know it, they are going to get what they wished for. They are going to get inflation, and then they are going to have a very difficult decision to make, because the only way to stop inflation is to cause a recession, and they don’t want to cause a recession. They are in the recession-fighting business. If they were happy with a recession, they wouldn’t have done this in the first place.
See Grice’s full take on the Fed and QE3 below:
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