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Lawmakers urged the Fed to halt its rate hikes, avoid engineering a recession
- melling 3y agoI think the bigger problem might be many banks can’t handle the rates moving up so quickly. I didn’t understand all the details but some banks were taking short term money and locking in long term commitments at what is now not a very good rate.
- xscott 3y ago> The lawmakers pressed Fed Chair Jerome Powell to “avoid engineering a recession that destroys jobs and crushes small businesses.” Damned if you do, and damned if you don't. The Fed doesn't have a lot of tools to slow inflation. If inflation keeps rising, there's going to be looting and violence when people can't afford rent, food, or gas to get to work. Jobs and small businesses won't like that either. In the meantime, the politicians can pretend they're looking out for the little people.
- scotuswroteus 3y agoLawmakers said this same mess to Volker, who was and shall remain the one true fed king.