3 ms·
higher prices for gas, goods and automobiles being fueled by the Fed’s unprecedented money printing programs Really? These are not caused by low interest rates
by HarryHirsch 5y ago
higher prices for gas, goods and automobiles being fueled by the Fed’s unprecedented money printing programs
Really? These are not caused by low interest rates. But the current housing prices are caused by low interest rates, and that's not even discussed in the article.
But the government is missing in action.
- Robotbeat 5y agoI think it’s kind of silly to blame gas prices on Fed action since 2008-2011. Even in nominal terms, gas prices are lower now than the peaks of that time, and for much of the time, gas prices were FAR lower. Inflation was low for over a decade. We hit a huge pandemic and inflation ticked up. Let’s not crown him vindicated about inflation like a clock that’s right one or twice a day. He has a decade of low inflation to answer for first, and countless examples of monetary austerity giving rise to recessions in other countries as counterfactual.
- exceptione 5y agoThe article makes a point that Hoenig did repeatedly not mentioned inflation. Instead his main point is about the inequality as well as asset bubbles QE would cause. I think he is right, also about the point that you cannot walk back without causing massive pain in the economy. I too think central banks have painted themselves in a corner, as when central banks drop even a slight hint of changing course, panic in the markets follows.