Can the Federal Reserve keep raising interest rates and defeat the nation’s worst bout of inflation in 40 years without causing a recession?
Not according to a new research paper that concludes that such an “immaculate disinflation” has never happened before. The paper was produced by a group of leading economists, and two Fed officials addressed its conclusions in their own remarks Friday. When inflation soars, as it has for the past two years, the Fed typically responds by raising interest rates, often aggressively, to try to cool the economy and slow price increases.
The Fed’s higher rates, in turn, make mortgages, auto loans, credit card borrowing, and business lending more expensive.
3 comments
Joe Biden has put our country back into the Jimmy Carter inflation years.
Raising the interest rates is not the solution. The solution is to pay off the debt and erase the fiat money that was created out of thin air that is devaluing our dollars.
Raising the rates just funnels more of our money into the pockets of the Federal Reserve (not affiliated with the Federal government) bankers. This is a giant scam, and the powers that be just keep doing it.
And we just keep letting them.
Since 1913 when President Woodrow Wilson signed into law the Federal Reserve Act.