The Julia La Roche Show · Tuesday, July 14, 2026
Larry McDonald expressed concern over the Federal Reserve's credibility, stating they have been 'behind the curve' on inflation and geopolitical events. He believes the Fed faces a difficult task in engineering a soft landing and preventing unanchored inflation expectations.
“I mean, at the end of the day, the Fed has been behind the curve. They've been behind the curve on inflation. They were behind the curve on the Russian invasion and the spike in oil prices.”
“And so, you know, the Fed's credibility is certainly being tested right now.”
“And, you know, a lot of what the Fed does is based on expectations, and if those expectations get unanchored, that's when things can get really tricky.”