Bloomberg/Tom Hancock/8-24-2021
“The Communist party’s politburo has pledged ‘greater autonomy’ of macroeconomic policies, signaling a willingness to add stimulus as China’s recovery loses steam even if the Fed starts tapering bond purchases.”
USAGOLD note: China is worried, according to this article, about inflation in the United States. It worries about future Fed tightening, as a result, and “shocks to the world and Chinese economy.” China is worried about both systemic risk and a stronger yuan. Though this article doesn’t mention it, one central bank criticizing another is not something that happens all that often. “A large amount of currency,” says the PBOC, “will inevitably lead to inflation.”
