3 ms·
Yeah but this could be an instance where the cure is worse than the disease.
by nemo44x 4y ago
Yeah but this could be an instance where the cure is worse than the disease.
- adventured 4y agoI think it's very likely to be worse (certainly drastically more risky). The Fed has a history of hard landings. There was a level at which more modest rates would have gradually bent inflation downward over time, and it would have taken a while (a year or two longer, say). IMO the Fed was too aggressive in trying to stop it asap. They went too far too fast and we'll see a rolling fallout from it for several years yet. Lower rates with elevated inflation for a bit longer, would have been the more prudent choice, than cranking the volume fast and risking a financial crisis.