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Economy

bucolic_frolic

(48,498 posts)

18. Powell's is the Arthur Burns' Fed of the 1970s

Reply to elleng (Original post)

Sat Aug 6, 2022, 09:30 AM

Aug 2022

Everything has been on loose money for 10 years. Deficit Covid spending was also stimulus. Wage hikes are a stimulus. In the 1970s the Fed was way late. It took Volcker to stop inflation. When inflation was briefly 14%, he had to raise interest rates to ..... 15%.

We are now at 9%. If they do this quickly, into 2023, and get to 10% Fed funds rate, it might tame inflation quickly. Trouble is the number the Fed and economists float is 5-6%. That is insufficient. And wage growth will continue to give a kick to inflation.

So the idea that the Fed will use the tools it has and take the political heat to tame inflation is ludicrous.

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The Fed will have to 'break this economy' to tame inflation after the strong jobs report, [View all] elleng Aug 2022 OP

Somehow that sounds absurd. honest.abe Aug 2022 #1

Yes, something is fishy. Seems the strong jobs report... brush Aug 2022 #2

Yeah, break the economy, force millions to be laid off, become homeless, starving.. honest.abe Aug 2022 #4

It's good when you have tons of money Claustrum Aug 2022 #14

I don't either Rebl2 Aug 2022 #17

And im betting it needs to be done by September or October Fullduplexxx Aug 2022 #19

That's Capitalism? Captain Zero Aug 2022 #3

That's unregulated, laissez-faire capitalism. brush Aug 2022 #6

Because it is absurd, duforsure Aug 2022 #5

Y is the leftover Fed head still calling the shots.🤔 sprinkleeninow Aug 2022 #7

Thank you for this AllyCat Aug 2022 #9

Same for me. True Blue American Aug 2022 #11

This is bordering on ridiculous MerryHolidays Aug 2022 #8

I have an idea! LittleGirl Aug 2022 #10

But a practical Dreamer! True Blue American Aug 2022 #12

Total hogwash nowforever Aug 2022 #13

Half of these so called experts are saying the Fed is acting too slow and doc03 Aug 2022 #15

another thing we seem to be forgetting.. essaynnc Aug 2022 #16

Powell's is the Arthur Burns' Fed of the 1970s bucolic_frolic Aug 2022 #18

Another economist expert blowing smoke out their . . . . Emile Aug 2022 #20

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