Dave M. answered 10/17/17
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Phenol is a nucleophile, formaldehyde is a potent electrophile. Acid and base catalyzes this process. Since a protonated formaldehyde molecule is essentially a resonance stabilized carbocation (also known as oxocarbenium), it is therefore likely that it will undergo the Friedel-Crafts reaction (alkylation, not acylation).
This is actually a famous process...the first industrial scale polymer named after the ”inventor” (first to patent this). This incredibly durable thermoset polymer is known as “Bakelite” and made it possible to create, for example, the original but now ancient landline telephones with rotary dials and a hangup button/stand.