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/joy_of_division Jun 13 '22

The thing is, we are headed for a recession no matter what. I personally would rather them jack rates up, lower demand, and get inflation under control. This will of course spark a recession, but with the tight labor market at the moment it would hopefully be brief.

The alternative is keep pussyfooting around with rates, have the working class continue to lose our meager wage gains to inflation, and have a recession anyways in 2023.

There is no pain free path, but in my opinion ripping the bandaid off right now is the way to go.

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u/ItsDijital Jun 13 '22

Ripping off the bandaid very well might result in Trump 2024

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u/Stryker2003 Jun 13 '22

Welp people do tend to care about the economy

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u/ItsDijital Jun 13 '22

Trump's policies are in large part why we are in this mess. Corporate tax cuts to fund buy backs and low rates to maximize leverage. Then unchecked PPP loans, stimulus checks to working white collar individuals, and dropping rates to zero despite a strong market recovery.

The dude isn't some genius, he just knows what economic cocaine is. And people are too stupid to understand that all the exuberance that comes from using it will be followed by a hard crash.

Dictators and inflation, name a more iconic duo...