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Fed Hikes Rates Most Since 1994 In Dramatic Mea Culpa
The Fed hiked rates by the most since 1994 on Wednesday, in a decision that might aptly be described as a historic mea culpa.
The 75bps move punctuated an awkward about-face by US policymakers who, after spending the better part of the pandemic recovery insisting elevated inflation would prove "transitory," found themselves staring down a crisis in 2022, when the war in Ukraine drove up food and energy costs, insult to injury for consumers already struggling with sharply higher prices.
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As Trump should have learned, it is better to admit one’s failure than perpetuating a lie or judgemental mistake in the case of the Fed. Larry Summers was right all along.Lasrry Summers for Treasury Secretary. Yeah.
75 basis points in the face of 8+% inflation. Volcker, this ain’t.
Neither side of the tightening debate will be happy, so a good move on their part. What’s the hurry folks?
But dear lord, why keep publishing those useless, counter-productive dot plots?
Agreed, @derek — what’s the hurry? The Fed can’t control war / climate change / pandemic. We obsess over the Fed, the real problem is minority rule by the Senate. The real solution is MMT / UBI which allows low income folk to stay afloat. The rest of us will manage.
H-Man, I am with Ackman, if your going to take away the punch bowl, you don’t let everyone keep sipping as your walking out the door. Many eons ago in my bar hopping days, last call was last call.