Inflation, here we come.
I realize that economics has been turned on it’s ear for quite a number of years, but raising rates always has tamped down inflation, even in the protracted period of “stagflation” in the seventies it eventually worked, rates had to be raised to a bizarre level in the early Reagan years to finally kill it off, though. It caused a short, but very sharp recession before we started to climb out of it and into the boom times everyone associates with the Reagan era. Right now, I don’t believe the US economy is strong enough to absorb rate increases, personally, it’ll end up killing sales of anything bought on credit which is just about everything above and beyond groceries these days. Not inflationary, I think it’s just the opposite. Deflationary, and we’ve been teetering for years. Some risk there.
With 90 million not working, open borders and our industrial base gutted there is not much a chance of wage induced inflation. If anything higher interest rates may dampen consumer spending and push prices lower.