It’s decision time today, and the Fed is between a rock and a hard place. Raise rates, cause more mark-to-market losses, and intensify the banking problems. Halt the rate increases and lose the fight against inflation. What should it do?
Tag Archives: Fed
The R-Word
The Fed is trying to engineer a soft landing, defeating inflation without driving the economy into recession. But it is facing just a few problems. What is the chance that the Fed will succeed?
The Mystery of Returning Inflation
Everybody likes a good summer mystery. So consider the real-life case of the returning inflation. For more than two decades, inflation had vanished from the US economic scene. But suddenly this summer it has returned. And everyone wants to know why.
Marginal Economist 