The US economy is heading for a “crash landing,” according to “Rich Dad Poor Dad” author Robert Kiyosaki, who advises investors to turn to gold and silver. “Still best insurance against corruption & incompetence,” the author said in a tweet Thursday, encouraging investments in “real money” instead of cash, or “trash,” as he has previously called the greenback. Because inflation has stayed well above the Fed’s 2% target, Quintet Private Bank’s chief economist, Daniele Antonucci, has called a potential rate cut “an implausible scenario.” “The Fed may need to hike more aggressively if inflation stays elevated,” Antonucci added, pointing to the strong labor market data. Many economists were shocked by the Fed’s previous rate hike amid the banking turmoil, including top economist Ed Hyman, who predicts a hard landing ahead. With even more uncertainty surrounding the debt ceiling and a possible default, the Fed’s fixation on inflation could be the cause of a harsher recession.

Markets Insider/Zinya Salfiti
‘Rich Dad Poor Dad’ author Robert Kiyosaki warns the economy is headed for ‘crash landing’ – says investors should buy bitcoin, gold

Robert Kiyosaki warned the US economy is heading for a severe downturn, saying investors should buy bitcoin, gold and silver to hedge against what he called “corruption and incompetence.”

“SOFT LANDING? HARD LANDING? Or CRASH LANDING? I say crash landing. I hope I am wrong yet that is what I believe. Corruption is high & leaders corrupt. Buy gold, silver, Bitcoin. Still best insurance against corruption & incompetence,” the personal-finance guru said in a tweet on Thursday.

The famed “Rich Dad Poor Dad” author is a frequent economic doomsayer, having previously predicted the worst market crash in world history in 2021.

Continue reading, here.

CNBC/Elliot Smith
Fed may be forced to defy market expectations and hike more aggressively, economist says

The U.S. Federal Reserve may be forced to defy market expectations by raising interest rates aggressively again later this year if sticky inflation and tight labor markets persist, according to Daniele Antonucci, chief economist and macro strategist at Quintet Private Bank.

Having hiked by 25 basis points to take the fed funds rate into the 5%-5.25% target range earlier this month, the market is pricing around a 60% probability that the central bank pauses its monetary tightening cycle at its June meeting, according to the CME Group’s Fed Watch tracker of prices in the fed funds futures market.

The Fed has been hiking rapidly over the past year in a bid to rein in sky-high inflation, but the market expects policymakers to begin cutting rates before the end of the year. Annual headline inflation fell to 4.9% in April, its lowest for two years, but remains well above the Fed’s 2% target.

You can read the full article, here.

The Hill/Liz Peek
Ready for the reluctant recession?

Wall Street’s favorite economist just issued a wake-up call, reminding us that sometimes “it’s ok until it isn’t.” That is, during Fed tightening cycles, the economy can appear just fine and continue to hum along — until all at once it falls out of bed.

Ed Hyman, who has been ranked the Street’s top economist for an extraordinary 42 years, cites the 2007-2009 downturn as an example. The housing crisis emerged in 2006; the yield curve inverted in that year’s third quarter, the Fed paused and the economy continued to grow. Two years in, the economy began to meaningfully contract, in the third quarter of 2008. In other words, the downturn took a long time to develop, just as it has in this cycle.

Many investors and analysts have been looking for a recession over the past nine months; in the next quarter that elusive downturn may finally arrive.

You can read the full article, here.

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