[PGR88]

If they want to kill inflation they’ll need to go big like Volcker did in the early 80s. It’ll be 2 years of hell for the economy, but it’s the only thing that will kill inflation.

I just don't see it. Yes, inflation is "always and everywhere a monetary phenomemon" but US is far more socialistic now than before, China and USA are disengaging, we are still facing supply chain issues, and we have far more malinvestment in non-productive things.

They may control inflation, but not eliminate it - the result will be stagflation

[griswold3]

Now Along with mal investment, low productivity , We have a $31T deficit

[theyreallthesame]

First guess is .50% to “show that “”they’re “”serious””. 2nd guess is .25% and the threat of continued raising. There is only so much they can do.... especially in an election year.

[Beowulf9]

Not true. 1970s stagflation was the result of anti wealth and anti business/capitalism liberal tax and regulatory policy. The Fed allowed the inflation because it was better than a DEPRESSION. It took Reagan’s tax and regulation changes to get economic growth and lower inflation….increasing competition and innovation. The recession was not necessary. I believe the Fed was favorable to Carter and Democrats and hostile to Reagan. It kept Carter out of Depression , then shackled Reagan by recession which caused Reagan to lose big in the midterms. Volcker did NOT have to do what he did. Supply side economics only can work if the money supply grows fast with the economy. The economy cannot grow fast unless the money supply grows fast because money is the fuel that drives economic growth. That is what capitalism IS. That is how a rising tide lifts all boats—-more money being created but NOT more inflation. More goods and services. More competition and innovation. The money supply grows faster to accomodate faster growth, but without more inflation….therefore, you are taxing a bigger and bigger monetary bases, which is why and how you can get to a budget surplus with lower tax rates—-as long as the Fed does not try to use the brakes as the cooling system of the engine to keep it from overheating. The Fed is supposed to be like fuel injectors, not the brakes and gas pedals…..and the brakes are not the cooling system. You do not jam on the brakes to keep the car from overheating and not all cars are alike. 1970s was like a Yugo car. Trump’s economy was like a Cadillac, cruising 70mph in control and nowhere near the redline.