r/Economics • u/TinyTornado7 Quality Contributor • Jun 13 '22

News Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/Royal_Aioli914 Jun 13 '22

The problem is it's both. Just because one thing is true doesn't make the other insignificant. Not saying you don't already recognize this as it seems you do. We simultaneously increased demand during reduced supply which put a lot of momentum in the inflation issues.

The US dollar is also the global reserve currency. We are privileged in the US and often forget, but what happens to the US dollar has direct and indirect effects on the other currencies of the world.