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: US economy
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 Strange US GDP Report
Last week, the US reported that growth reached 6.5 percent in the June quarter (seasonally adjusted, annual rate), following the 6.3 percent rate recorded in the previous quarter. These are exceptionally strong numbers. Sure, they follow a recession. But the economy doesn’t always roar back after a setback, the way it is doing now. WhenContinue reading “The Strange US GDP Report”
Marginal Economist 