The Fed can’t curb inflation when r’s and d’s keep on spending. Trillions and trillions have been thrown at the covid wall and handouts. The Fed is almost powerless against such actions.
The Fed rate has to get above the inflation rate to seriously curb inflation—long long way to go....and the economy will crash and burn well before they get there.
This is like trying to have a “soft landing” with both engines gone—at 10,000 feet.
Bidet says “Hey, the landing gear still works.”
;-)
Trillions and trillions have been thrown at the covid wall and handouts. The Fed is almost powerless against such actions.
So, the Fed prints money we don’t have to pay for spending we don’t need, increasing the national debt.
Then, the Fed raises interest rates so the money we “borrowed” for the spending that we don’t need costs us more.
Brilliant!