The Federal Reserve Is a Stabilizing Force

To the Editor:
In hindsight, expecting that every decision of the Federal Reserve will prove correct is impossible (“Powell’s Last Stand: His Legacy and the Fed’s Independence Are on the Line at Jackson Hole,” Cover Story, Aug. 15).

For example, I don’t think the Fed could have imagined that, during the Covid pandemic, the government would have crushed the economy for two years.

Economics is subject to the uncertainty of an inherently chaotic system. The Fed is a stabilizing force. We can’t rely on politicians. Easy money during periods of inflation will lead to increased deficit spending and speculation. From a historical perspective, there are no exceptions.

David Richma
On Barrons.com

Avoid Private Credit

To the Editor:
Lending money outside traditional banking channels—more eloquently referred to as “private credit” by asset managers—isn’t all it’s cracked up to be (“Private Credit Is a Booming Business. Where One Pro Sees Risks and Opportunities Now,” Interview, Aug. 14).

It’s neither as safe as investment-grade bonds nor as diversified as publicly traded high-yield debt. Returns may be more muted than those of public equities, and its diversification benefits are questionable. Furthermore, this asset class is illiquid, and its ongoing tax liability is unfavorable.

Most retail investors would be better off sticking to a portfolio of stocks, bonds, and cash—steering clear of opaque asset classes like private credit, especially within their 401(k).

Jonathan I. Shenkman
West Hempstead, N.Y.

JBS’ Labor Issues

To the Editor:
I was surprised by Barron’s recommendation of JBS, the global meatpacking company, without mention of its awful labor practices (“This Meatpacker Stock Is a Quality Buy at a Discount Price,” Aug. 15). In the past five years alone, JBS settled three Covid safety violations and three deaths or amputations at one or more of its plants. It also paid $55 million to settle wage-fixing allegations, and $4 million to settle allegations that it relied for years on migrant children to work in its slaughterhouses.

Richard Trenholme
Denver

Inflation Threat

To the Editor:
I thought it fitting that Reshma Kapadia’s article citing Argentina as an example of emerging market behavior was followed by a story on Newmont Mining (“Trump’s Emerging Market Behavior Is Unsettling Investors. How It Could Hit Markets,” Aug. 14). For those wondering what the connection is, I refer you to a chart of gold priced in Argentine pesos. In 2010, 4,000 pesos bought an ounce of gold. Today, it’s over four million.

Gene Sweet
Chicago

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