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> Or if it does happen and inflation comes roaring back, This happened in the late 70s/early 80s. Volcker made this mistake and had to jack rates a second time
by voisin 4y ago
> Or if it does happen and inflation comes roaring back,
This happened in the late 70s/early 80s. Volcker made this mistake and had to jack rates a second time leading to a second recession deeper and longer than the first.
The current Fed has referred to this in recent speeches. I don’t think they’ll make the same mistake.
- nemo44x 4y agoAgreed. Powell’s recent comments about staying the course contrasted with sudden expectations they may stop raising rates now. He sounds serious about not making that mistake. However, he’s likely making sone other mistake we can’t be sure about but will reveal itself down the road.