Posted on 02/23/2025 9:34:32 PM PST by RomanSoldier19
St. Louis Fed President Alberto Musalem on Thursday raised the twin risks of rising inflation expectations and difficult-to-address stagflation, in remarks that highlighted the potentially difficult choices facing the U.S. central bank.
While many of his colleagues say they regard inflation expectations as anchored, Musalem said he was concerned recent data showed they may be rising - a development that might force the Fed onto a more restrictive path.
(Excerpt) Read more at msn.com ...
Musalem? That’s an interesting way to spell it.
...same as Musselmen...
You think a little inflation is gonna doe what? Just not sure :)
Suppose our fiscal profligacy leaves the Fed with no power to choose? Put another way, suppose we fall into a state in which any move the Fed makes either drives up interest rates to the point where the government cannot cover its interest costs, or, the move will deflate the economy, because unemployment, to the point where the government cannot cover its interest costs with tax receipts.
What this quoted statement implies is that we are incrementally closing in on the day when we cannot float our government debt with new government debt.
When that day comes, the deluge.
That is why President Trump and the rest of us are in a foot race to get fiscal spending under control before it is too late.
St. Louis Fed President Alberto Musalem
Why is stagflation a problem? Balance the budget, pay off the debt, eliminate spending beyond actual revenue,then rigidly clock money printing to the value of goods and services to maintain zero inflation.
MY SOC SEC increase-—when calculated as an hourly wage increase==21 CENTS AN HOUR
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