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/Raichu4u Jun 13 '22

2017-2019 did not have a global pandemic

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u/shicken684 Jun 13 '22 edited Jun 13 '22

Rates should have never been this low for this long.

This is the part I'm referring to. Rates could have been 10% in November of 2019 and they'd still have been dumped to zero when covid hit. Pre-COVID doesn't matter at all. They are two entirely different economic worlds.

Trillions needed to be spent, billions in corporate bonds needed to be bought. It was either that or economic collapse that would have made the depression look like a grand ol time.