Inflation Inflation InflationTough talk that the Fed will keep raising rates and curtail deficit spending is just a lot of tough talk and little more. When the government sees the bubble that the economy is made of bursting, they will open the floodgates with new spending to seal it off with more debt before an economic collapse taking shape gets out of hand. The Fed will pivot and quickly monetize government spending reversing deficit restraint to spare the economy and stock market.
Currently, the weakining POG reflects the sentiment the Fed is putting out there with their so-called tough stance on inflation investors have bought into. This won't last beyond the next few months
as the economy worsens and the recession deepens. Government and the Fed are about to get scared, real scared. At any rate, as nasty as its all becoming, it bodes well for the POG into next year with where inflation will be headed.