Dividend Stocks

[gfp927z]

Note - Higher rates are great for savers and retirees looking for yield, but we're close to seeing an inversion of the yield curve, which historically can precede a recession. The Fed's chief aim is to continue normalizing rates and reducing their bloated balance sheet so they'll have the ammo required to deal with future financial crises or recessions.

But as Jim Rickards points out, such aggressive tightening combined with QT could send the US into the recession the Fed is trying to avoid. So to counteract the tightening they are encouraging Congress to crank up higher deficit spending plus the tax cuts as a counterbalance. Interesting experiment, we'll see if it works.