Taps Coogan – June 28th, 2021

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Hoisington Investment Management’s Dr. Lacy Hunt, recently spoke with Wealthion about his outlook for inflation, interest rates, and growth. Dr. Lacy Hunt is one of the most respected ‘deflationists’ and treasury bulls and is clearly still sticking to his guns, despite the recent rise in inflation.

The interview above doesn’t lend itself to excerpts and is full of interesting charts, so enjoy it in full above.

As always, it is hard to argue with Dr. Hunt’s position that too much debt is ultimately deflationary for growth and interest rates. The real question is going to be the Fed’s reaction function if inflation does eventually drop. The Fed’s actions may indeed be counter productive to the Fed’s own goals in the long run, but we all live in the present.

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