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The last 2 sentences are why the article was written: The way inflation is looking these past five months, the Fed should take a break from its interest rate h
by xiphias2 4y ago
The last 2 sentences are why the article was written:
The way inflation is looking these past five months, the Fed should take a break from its interest rate hikes before, rather than after, it causes the next recession. That would be a much better choice than the course it is on.
We all know that something will break, but I guess they have to break before politicians can respond to the will of the voters.
- jmull 4y agoThe article is a bit dumb. “The Fed” (the Federal Reserve board, that is) knows what the inflation rate is and how it has been changing over the last five months and, of course, will consider that in it’s interest rate decisions. I like the off-hand assertion that the fed causes most recessions. As if “they” have strong control the economy but are just too dumb or corrupt to only make the numbersgo up. Kind of embarrassing actually, for a “think tank”.
- solarkraft 4y ago> Kind of embarrassing actually, for a “think tank”. The purpose of a think tank is (often) to promote values of whoever funds it. So, while it may look embarrassing, they're doing exactly their job.
- qwytw 4y agoThey seem too much more focused on increasing unemployment and slowing wage growth and no longer that interest in the actual inflation numbers. At least that's the impression I got after the last meeting.
- credit_guy 4y agoAnd the will of the voters is to have high inflation? The Fed does not want a recession, but if it has to choose between a recession and high inflation, it's a simple choice. The choice of following the law. Which stipulates that the Fed has 2 jobs (the dual mandate): to keep inflation and unemployment law. Recession is not part of the law.