Is an ‘ugly’ recession about to hit in 2024?
Steve Hanke, Professor of Applied Economics at Johns Hopkins University tells Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, that the Federal Reserve is ‘flying blind’ and ‘doesn’t know what it is doing’ when it comes to controlling inflation while maintaining full employment. He says that the Fed needs to focus more on the money supply, and explains why he thinks an ‘ugly’ recession will hit the U.S. economy in 2024. He also discusses gold and his work on currency boards.
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Follow Michelle Makori on Twitter: @MichelleMakori (
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Follow Steve Hanke on Twitter: @steve_hanke (
Hanke-Cofnas Gold Sentiment Index:
0:00 – Fed’s latest rate hike
4:53 – Money supply and inflation
9:17 – Recession in 2024
18:54 – Lagging indicators
21:20 – Banking collapses and credit crunch
29:27 – Stock market
31:31 – Gold
38:28 – Argentina’s inflation
#inflation #gold #money
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BREAKING: Recession News
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Federal Reserve Chairman Jerome Powell may be “flying blind” into an “ugly” recession predicted to hit the global economy in 2024, according to economist Steve Hanke. Hanke believes that this impending dire situation might finally force Powell to change his current monetary policy approach.
Hanke, a renowned economist and professor at Johns Hopkins University, has been critical of the Federal Reserve’s handling of monetary policy for a while now. He argues that Powell’s reliance on outdated economic models and his failure to acknowledge the potential dangers on the horizon have left the central bank ill-prepared for a significant downturn.
According to Hanke, the current economic expansion is running on borrowed time, and a recession is imminent in 2024. Hanke argues that with the recent rise in inflation rates, combined with mounting debt levels and financial instability, the global economy is walking on a precarious tightrope, ready to plunge into crisis.
While the Federal Reserve is tasked with promoting stable prices and maximum employment, Hanke believes that Powell’s policies have neglected the potential risks and have actually contributed to the imbalances in the economy. By keeping interest rates low for an extended period and pumping liquidity into the financial system, the Federal Reserve has double-downed on an already overheated economy, heightening the risk of a rapid downturn.
But what makes Hanke predict that this particular recession will force Powell to pivot? Hanke argues that the severity of the recession expected in 2024 will leave the Federal Reserve with no alternative but to reconsider its traditional monetary policy tools. Simply put, the magnitude of this downturn, combined with inadequate policy responses, will leave Powell and his team with no choice but to rethink their approaches.
Hanke suggests that the Federal Reserve should have already changed course, employing a more proactive and forward-looking policy strategy. He believes that the central bank should have taken a more aggressive approach to address the potential imbalances in the economy, rather than sitting on the sidelines and hoping for the best.
While some may view Hanke’s predictions as overly pessimistic, it is crucial to acknowledge that he has a solid track record in forecasting recessions. His ability to identify economic bubbles and subsequent recessions in the past gives weight to his argument.
Ultimately, the world will have to wait and see if Hanke’s predictions for an “ugly” recession in 2024 come to fruition and if this will indeed force Powell and the Federal Reserve to change their approach. A more proactive and forward-looking monetary policy may be necessary to prevent the global economy from falling into a prolonged slump. However, until then, uncertainty looms, and concerns about the Federal Reserve’s ability to navigate through turbulent waters persist.
Appreciate that you interview people with different opinions Michelle, great questions .
Maybe let Powell live a normal middle class life for a year where he would have to go to store not his maid or butler and just see HOWMUCH things actually cost!..do the same for politicians that have addiction to insider trading and gets away with it…only in America a politician can be voted in office making 80 k$ a year and come out a millionaire ask trump biden or McCarthy,pelosi..the list goes on…
Fed Chairman Jerome Powell should fight inflation by telling Biden to stop printing money and giving away money. That is Economics 101 Jerome Powell should know that I hope
Hankies camera looks better, but his internet connection must be going over the university network.. And yes it is horrible.
I think M2 bottomed at 20630. Going up after that.
the Hopkins university needs a better internet package
didn't TGA money come from reverse repo?
Liquidity crisis = Loans approvals Crisis
Loans approvals Crisis = Asset Price Collapse.
Bull
I believe that the FED will be under massive pressure to lower interest rates by the Biden administration next year.
Recession by December 2023
Can you do a 2nd interview pls pls with a better audio?
This was a horrible interview. I feel like i am listening to Joe Biden trying to speak. All the stuttering and jumping from one topic to another without finishing a thought.
“Deposit bonus” has recently become synonymous with “scam nearing its end”.
Remember, not your keys, not your coin.
All that money and we can’t get a decent internet connection for the guy to avoid the voice clipping?!
Anyone have a copy with his audio cleaned up?
The END OF ALL THINGS ARE AT HAND.
GREAT interview! Thanks!!
U should prolly check ur guess's mic quality b4 u start.. this guy sounds terrible.. js
I don’t care if you are warren buffet or jimmy buffet. Noone knows nothing about the futute
Druckenmiller says the STOCK of money is so high, there might NOT be a severe recession despite the contraction in M2. Can it be the case?
What’s his view on DXY?
How about gold stocks?
Does it always revert to mean?
WHEN WILL HANKE’S SENTIMENT INDEX’S APP BECOME OPERATIONAL?
Does FED go back to QE next year?
How should silver behave during a recession?
As he describes it, why don’t they call it asset/capital ratio, instead?
Why is capital/asset ratio important?
Why did FED’s BS remain stable for two weeks in a row?
How long can TGA survive w/ less revenue & higher interest payments, thanks to the higher rates?
How would the 2024 elections affect the FED policies?