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Another Black Monday May Be Around the Corner
  + stars: | 2023-10-23 | by ( John Greenwood | Steve H. Hanke | ) www.wsj.com   time to read: 1 min
Journal Editorial Report: The week's best and worst from Dan Henninger, Mary O’Grady and Kim Strassel. Images: Reuters/AFP/Getty Images/Bloomberg News Composite: Mark KellyThe Federal Reserve’s policies are threatening U.S. financial markets and the economy. They are in danger of a steep recession and the risk of a repeat of 1987’s Black Monday. Early in the pandemic, the volume of U.S. dollars in circulation soared. That is more than three times the appropriate rate for hitting the Fed’s 2% inflation target.
Persons: Dan Henninger, Mary O’Grady, Kim Strassel, Mark Kelly Organizations: AFP, Getty, Bloomberg
Turkey is expected to head to the polls on Sunday. In the event of a victory by Erdogan, it's "highly likely the Turkish lira collapses within months," the founder of advisory firm Cribstone Strategic Macro Mike Harris told CNBC. "Ultimately the lack of confidence in investment will mean that the Turkish Lira will probably be among the worst performing currencies in the world for some time," he said. Turkey's monetary policy prioritizes the pursuit of growth and export competition rather than assuaging inflation. Erdogan endorses the unconventional view that raising interest rates increases inflation, rather than taming it.
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