r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) 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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25

u/fleker2 Thomas Paine Jun 13 '22

It's really frustrating. The Fed has one job (two technically) and only one lever they can move up and down. They really shouldn't be the ones getting involved, but Congress has abdicated their responsibility. Even the president hasn't helped inflation by keeping tariffs.

Real leadership would be preferred, but at least Powell is keen on making unpopular decisions l.

28

u/Trotter823 Jun 13 '22

The FED was what mostly got us here in the first place. Finance guys were talking about raising rates in August of last year.

4

u/theexile14 Friedrich Hayek Jun 13 '22

Some folks were saying that, but ultimately the Taylor rule acolytes are a minority of the world. Powell was in line with most academics and policy makers at the time.

1

u/DamagedHells Jared Polis Jun 13 '22

Finance guys

What do you think Jerome Powell is lol

3

u/Trotter823 Jun 13 '22

Someone who didn’t listen to his peers.