David Osman of the IRF Podcast is joined by Carl Weinberg, the Managing Director and Chief Economist at High Frequency Economics to discuss ‘Recovery from the Covid Crisis – Sizzle or Fizzle.’ High Frequency Economics has been a trusted source of economic intelligence for the financial community for over 30 years.----more----

The Fed is facing a crisis and there is no good policy option to be had. It is currently looking at extraordinarily high unemployment which it sees as a risk to social stability, financial stability and economic stability – an unaffordable burden on the economy. There is a risk of inflation to be weighed against the risk of high unemployment. Carl is not convinced there is an inflation risk and gives his reasons why. He states that inflation is the simultaneous and proportionate increase of all prices and all wages for a sustained period of time. He looks back at the last global financial crisis in 2008/09 and then recalls that going into the current economic downturn the economy was already entering an industrial recession. The question he asks of those expecting a sizzling rebound is: ‘Why should the economy not go back to what it was doing before the Covid crisis.’ Carl discusses the impact of scarring from the pandemic and closes with his thoughts on the strongest risk to the strength of the global economic rebound. This may take investors by surprise!