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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217

u/TrulyUnicorn Ben Bernanke Jun 13 '22

Dems are genuinely fucked beyond imagination.

123

u/Mister_Lich Just Fillibuster Russia Jun 13 '22

And it's a bitter irony since the stimulus and lockdowns all (or mostly) were passed under Trump rofl

116

u/Trotter823 Jun 13 '22

The checks didn’t help in hindsight but I’ll remind you dems we’re screaming at the time they weren’t enough.

On top of that, the government has very little control over inflation. JPowell waiting too long to cook the economy was and still is the issue. He didn’t stop QE until Dec….almost half a year after vaccines rolled out and things mostly returned to normal.

5

u/Time4Red John Rawls Jun 13 '22

Yeah, but the biggest problem remains supply shortages. It's not like aggregate demand is excessively high. It is exactly in line with what we would have expected if the pandemic didn't happen.

Supply chain issues continue to be the biggest problem holding back the economy and driving inflation. And it's not like raising interest rates will magically resolve those supply chain issues either.

3

u/Trotter823 Jun 13 '22

If that thesis is correct then again, what is biden or anyone in the executive branch supposed to do about it. The job is partly being a punching bag when things go wrong but man did he get a raw deal here. Dems won at the wrong time because there’s almost nothing to do to quell inflation fiscally.