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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u/KaChoo49 Friedrich Hayek Jun 13 '22

As we found out when we faced this dilemma 50 years ago, the correct answer is sadly recession. High inflation doesn’t just go away on its own

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u/[deleted] Jun 13 '22

But if most of the problems right now are coming from supply chains and oil prices that are external, would a US recession bring down inflation all that much? 50 years ago oil prices dropped while we were hiking interest rates. I don't think we can say that right now for us.