Those of us who remember being strangled by Volcker in the late 70’s while Carter dithered are happy to have someone who understands the capital markets better then the Fed chairman at the helm of the country.
Yield curves are often inverted by over aggressive Fed Boards. The Fed increases, the curve inverts, recessions ensue. Do the math...
“Those of us who remember being strangled by Volcker in the late 70’s while Carter dithered”
18% mortgage interest rates.
The Volcker strangle is what finally broke the back of the ‘70s inflation. Reagan supported Volcker’s plan for killing inflation. And it turned out to be more effective than anyone had predicted.
We are in an entirely different situation now. Interest rates are still near historic lows. The Fed needs short rates within a certain range or they don’t have one of their primary recession fighting tools. All that they did is bump short rates up to the lowest part of the range that they need.