This issue seems to make its way into many of the threads on this site. I happen to agree with Xie and think the fed will target inflation in the 5-6% range at least over the next several years. The bond market will either play along or the fed will monetize.
The fed is pulling out all the stops to jaw-bone down inflation expectations with their puppets but at the end of the day I expect they will have to continuing monetizing. The bond market is only stupid for so long.
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