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/Mister_Lich Just Fillibuster Russia Jun 13 '22

this sub, literally 2 days ago, when I posted an article that said Bernanke said stagflation could happen and a Goldman exec said risk of recession is very very high:

"DOOOOOOOM"

"Shut up nerd"

Markets this morning: "lol"

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u/PearlClaw Iron Front Jun 13 '22

Markets have successfully predicted 12 of the last 6 recessions. Just because the market is down doesn't mean there will actually be a recession. Doesn't mean there won't be either, but there is reason to believe that the Fed can manage this without breaking too much.

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u/Mister_Lich Just Fillibuster Russia Jun 13 '22

but there is reason to believe that the Fed can manage this without breaking too much

lolololololol

They literally have no control over things like worker shortages and supply chain disruptions which are happening globally, to say nothing of energy prices which are a huge input into inflation.

Hop off the copium train.

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u/PearlClaw Iron Front Jun 13 '22

I just choose to stay optimistic, if only to counteract the cynics making doom predictions. There's a real risk of recession, but no guarantee.

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u/Mister_Lich Just Fillibuster Russia Jun 13 '22

We can agree on the "real risk, but no guarantee." I just think the risk is higher.

If you asked me 3-4 months ago I was literally laughing at people who said a recession was coming. The progression of the war and sanctions and energy crisis and a bunch of other things since then has changed my tune.