Taking a Roller Coaster Ride with the Fed

The medical profession ignored their oath to do no harm, in favor of their own financial security. The same would certainly happen with financial people.

We better hope it is only a roller coaster and not off the edge of a cliff.

I am not an economist but nowhere in the article does the author mention the trillion+ dollars poured into an economy where production was deliberately shut down leaving way too much money chasing way too few goods. Isn't that the very definition of inflationary? I'd seriously like someone to explain how jacking up interest rates so rapidly solves that dilemma.

Finding anyone in DC that knows what they are doing is like that old Greek dude with the lantern roaming the land looking for an honest man.

Med grads do not take the Hippocratic Oath anymore. That would require them to promise they won't aid a woman via abortion. The oath was watered down long, long ago.

The original sin that triggered the current inflation spike was the decision to lock down the economy to stop COVID. The government could not do this without also sending out checks to offset the lost income but they couldn't offset the disruption to the supply chains. With the same money chasing fewer or delayed goods, prices had to go higher. Add to this the Biden energy policy with Russian sanctions that spiked oil, gas, and fertilizer prices and you have created a perfect inflationary storm. But like 18th century doctors, the Fed did not have a lot of cures in their bag. Basically, they could only "bleed" the economy of its "bad humors" by raising the discount rate and stopping the purchase of Treasuries. This has stagnated the money supply and caused massive constapation of businesses who are afraid of spending any borrowed money and can only purge themselves of their largest expense, labor. This makes the remaining workers more valuable so they are demanding higher wages in response. The real remedy to the induced inflation would have been a relaxing of the energy policy regulatory restrictions, targetted federal intervention in the supply chain lockups and targetted tax increases to curtail spending rather than driving up borrowing rates to cause unemployment. This would require far more nuanced and intelligent leadership than the present political class is capable of. Powell is stuck with "bleeding" the patient because he has to do something to keep his job.

The Fed Roller Coaster from HELL...count on it going totally off the rails and killing everyone on board!

The Fed has been running the economy with essentially zero interest rates,which distorts the economy tremendously with "free money". And the ONLY path to anything remotely like fiscal sanity lies across the dry, burning desert of high interest rates which will have to burn out all those distortions from 'free money'. That WILL BE painful, because the historically low interest rates have built in so many unworkable, unstable, abnormal things in our economy over so many years that to have all those BAD things ripped out and slowly, slowly normal economic incentives replace them will be painful. And the biggest problem is that 40+ years of Communist laws have so crippled our "free market economy" that the normal ways of recovering have largely been made illegal. Huge numbers of racist, anti-white laws and anti-free market laws strangle the recovery. The EPA and similar agencies strangle all attempts at normalcy. And Congress spends trillions of borrowed money, which is not sustainable. Fasten your seat belts, there is a big crash coming.