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Right, I just don't know how it's 'quick'. So much of inflation is supply side and not controlled by the Fed. They have to crush it hard and it may last a decad
by mgamache 4y ago
Right, I just don't know how it's 'quick'. So much of inflation is supply side and not controlled by the Fed. They have to crush it hard and it may last a decade.
- adam_arthur 4y agoQuick to begin, not to end, I should add. I agree it would likely be a pretty severe recession. Letting inflation run wild for a decade is probably the less painful path all else equal, but for legacy reasons Powell won’t choose that route. He would be remembered as a failure, just as Arthur Burns is. I would add that goods inflation is actually coming down, it’s much more about services inflation now which is labor supply driven, primarily. Services make up a majority of the CPI and aren’t impacted by logistics for the most part.