Warren Hammond’s Personal View: Inflation, inflation, inflation

President Trump’s recent declaration that he has removed Federal Reserve Governor Lisa Cook from her position, citing alleged mortgage fraud as grounds for “cause” under the Federal Reserve Act and the U.S. Constitution.

Long-term Treasury yields rose after the Trump move, while short-term yields declined as investors steepened the yield curve, based on the notion that rates may decrease in the short term but eventually rise as a politicised Fed becomes less attentive to inflation.

Structural Inflation, Debt, and Investment Patterns Support Key Forecasts

Considering the combination of tariffs driving up structural inflation, the prospect of lower interest rates, the USA’s swelling debt burden, and the habitualisation of debt-driven risky investment and consumption, this is a confluence supportive of:

• The Personal View’s bullish forecast on gold → see “Buying Gold” (8 Mar 2021).

• The Personal View’s forecast on EURUSD 1.50 → see “When EURUSD Trades 1.50 – The Nectar of the Gods and Price of Reckoning” (29 May 2025).

• The Personal View’s long-standing reiteration of deep structural & disruptive change that vanquishes the status quo across all facets of life in the USA → see “The USA – Major Themes 2015–2033” (8 Jan 2016).

• The Personal View’s forecast of multipolar capital reallocation away from traditional US-led paradigms toward Asia, especially China → see “Megatrends & The Future of Capital” (22 Apr 2025).

The status quo is being overturned in real time.

What are your thoughts on the Fed’s recent shakeup and its impact on markets? Do you agree with the bullish outlook on gold and the forecasted structural shifts? Share your insights and join the discussion below!

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