Re:179 Reasons You Probably Don’t Need to Panic About Inflation
by aww_dang on Thursday August 19, 2021 @08:47AM
(#28233138)
Are there any mainstream sources willing to dissent from the Fed's easy money policies?
The gymnastics start early in this article:
>“Cooling off” the economy sounds prudent, innocuous even. Yet, in practice, this monetary policy maneuver means that the Fed increases borrowing costs for businesses and pulls back on helping jobless Americans find work.
So if the Fed didn't exist, and we had a market interest rate - that would be the same as the Fed actively "cooling" the economy?
We've gone from "transitory inflation" to, "we can't think about raising rates, because we might not have greater than 2% next year".
The gymnastics start early in this article:
>“Cooling off” the economy sounds prudent, innocuous even. Yet, in practice, this monetary policy maneuver means that the Fed increases borrowing costs for businesses and pulls back on helping jobless Americans find work.
So if the Fed didn't exist, and we had a market interest rate - that would be the same as the Fed actively "cooling" the economy?
We've gone from "transitory inflation" to, "we can't think about raising rates, because we might not have greater than 2% next year".