Tornado Alley (PROG)

[blackhawks]

I go along with the info below. Now, why do YOU believe it is not a Pandemic driven, too much demand being squeezed through too inadequate a....pandemic damaged.....supply chain, inflation?

You don't KNOW, but WE all know that you're an ideologue vested in the failure of Biden and pining for the mid-terms. No thought as to what a strong recovery, moderating inflation and a pandemic decimated GOP base will mean for those mid-terms.

Also the amount of dirty GOP skivvies in the laundry that the House 1/6 committee and the DOJ will continue to 'process' will not work to the Trumpanzee Party's advantage, as it is held up to view for the whole country for many, many, more months.


Fiscal policy is pretty much off the table: Whatever the fate of President Biden’s spending plans, they aren’t likely to have much impact on short-run economic developments. So the question is about Fed policy. Should the Fed raise interest rates soon, to head off inflation, or wait and see whether recent inflation proves transitory?

There are risks both ways. If the Fed waits, inflation might become embedded, and bringing it back down again could be painful — though doable. On the other hand, if the Fed raises rates to head off an inflation problem that proves exaggerated, it could damage the economic recovery in ways that are hard to reverse. (Interest rates are still very low, so there would be little room for cuts if the economy weakens.)

So wait-and-see looks like the prudent thing to do. I think current inflation is transitory, but I’m not sure. I am, however, confident that tightening monetary policy based on what we know now would be a big mistake, because the risks of moving too soon and moving too late are highly asymmetric.

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