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>This is why it's crazy the Fed is trying to tank the economy the same time Congress is trying to do a CHIPS act. Crazy! Aren't these on wildly different timel

by KVFinn 4y ago

>This is why it's crazy the Fed is trying to tank the economy the same time Congress is trying to do a CHIPS act. Crazy! Aren't these on wildly different timelines? Anything created in the CHIPS act won't be cranking out chips for 5 or even 10 years, right? But inflation corrections can happen in a year or two. The CHIPS act is almost like insurance, in my opinion. If everything goes great in the future we don't need the CHIPS act and it retroactively feel kind of silly. But if something goes wrong (not necessarily human made decisions, an earthquake in the right place...) we'll be glad we could have a softer landing.

Ericson2314 4y ago
> But inflation corrections can happen in a year or two. Monetary policy sucks, there is little evidence of it ever creating a soft landing. (As opposed to regular market forces incentivizing more supply and fixing the issues on its own.) Also, the consensus view is it takes up to 2 years just to come in effect! The Fed is probably creating a 2023-24 recession right now just as the Ukraine war and other sources of supply disruption stop being a problem!