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We are not slashing rates, that is not going to happen. Those times are over. We can not slash rates without inflation becoming a larger issue. We had a nice r

We are not slashing rates, that is not going to happen. Those times are over. We can not slash rates without inflation becoming a larger issue. We had a nice run but this is back to the historic norm that inflation is always lurking in the background and highly constraining on central bank policy. You are just repeating a standard narrative that is almost certainly wrong. 6-12 months out a mild recession happens and then the Fed slashes interest rates and the market takes off. I personally suspect this is all a form of denial of how ugly the situation is economically. Once inflation catches a spark it doesn't just go out because basically everything economic in terms of a recovery is inflationary.

lamontcg 4y ago
> Those times are over. We can not slash rates without inflation becoming a larger issue. If unemployment is pushing 8% they certainly can. > Once inflation catches a spark it doesn't just go out because basically everything economic in terms of a recovery is inflationary. This is nonsense. If the economy is in recession and unemployment is at 6-8% then we won't be in a recovery and it won't be inflationary. It will wind up blowing up another asset bubble, but they don't care about that, which is why economists distinguish between inflation and housing appreciation. The pandemic recession was way too brief and v-shaped and was heavily cushioned by all the stimulus. That won't happen next time. That isn't the new pattern of recessions.