In an effort to tackle inflation, the federal reserve is raising interest rates to three-quarters of a percentage point, and could do the same again in July. So why the mixed messages in Jerome Powell’s briefing? Images: Shutterstock/Reuters Composite: Mark KellyThe current inflation was sparked by fiscal policy—the government printed or borrowed about $5 trillion, and sent checks to people and businesses. The U.S. has borrowed and spent before without causing inflation.
The Federal Reserve’s monetary-policy tools to cure this inflation are blunt. By raising interest rates, the Fed pushes the economy toward recession. It hopes to push just enough to offset the stimulus’s fiscal boost. But monetary brakes and a floored fiscal gas pedal mistreat the economic engine.
opinion JohnHCochrane thedippynews fringe?
opinion JohnHCochrane The federal reserve which is a private central banking entity completely separate from the US Gov has effectively been destroying the value of the currency since it’s inception in 1913… EndThFed
opinion JohnHCochrane Meanwhile our government is spending us into oblivion.
opinion JohnHCochrane
opinion JohnHCochrane Will you be honest GOP policies have added hugely on the debt… or is that fact something Murdoch Media can’t discuss
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