Axel Merk, president and chief investment officer at Merk Investments, says Fed Chair Janet Yellen is not concerned enough about potential asset dips caused by investors rushing for safety when the Fed begins to raise rates. He says Chair Yellen wants to be “behind the curve” and err on the side of inflation, which suggests negative real interest rates “for a long time”. Merk says the U.S. dollar is overvalued and sees the euro becoming a competitor again in the flight to safety. He says a level of EURUSD 1.45 is “likely”. Merk speaks with Bloomberg’s Kathleen Hays and Vonnie Quinn on Bloomberg Radio’s "The Hays Advantage”.
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