Jerome Powell, chairman of the U.S. Federal Reserve, said that downside risks to the economy remain with trade wars softening business investment and weak inflation.
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People at the very top are a little confused by the current economy and top in the market.
Warren Buffett has said that no economic textbook explains the “strange” economic situation we are in today. Federal Reserve Chairman Jerome Powell recently testified that the decades-old relationship between unemployment and inflation “has gone away, ” so the old rules about raising rates to limit inflation don’t apply today.
Ray Dalio of the world’s biggest hedge fund, Bridgewater Associates, says that a coming “paradigm shift” in investing means it is time to reduce risk by investing in safe-haven assets, including gold, as central banks get more aggressive with policies that devalue currencies.
Maybe stranger still: Even as it is more difficult today to make sense of the current…