Hubris And ‘Dangerous Groupthink’
Christopher Waller wasn't prepared to unequivocally endorse a 100bps rate hike at this month's FOMC meeting.
He did, however, acknowledge that June's CPI report counted as a "major league disappointment." Much like a Fed that lets inflation accelerate to 9.1%. (Sorry, I couldn't resist.)
Waller spoke Thursday at an event in Idaho, where he stopped short of prescribing the all-in approach adopted this week by the Bank of Canada, which resorted to a massive rate increase and warned explicitly on
Good comment on Summers. Also keep in mind bank of Canada went 50 last time vs 75 for fomc. So their 100 was catch up if the Fed goes 75 again.
At the end of the day, we’re all on our own. You can trust experts only as far as their expertise applies. The paradigm has shifted and it’s important to ignore speculation and read the data for what it is. No central bank or government has a clue how to solve this. Strap in.
H-Man, the solution to inflation is raising interest rates but the Fed seems loathe to do so for fear of creating a recession. I must assume that if we are in a recession (which by all indications we are), what is there to fear in raising rates? The Fed needs to stop this experimentation and simply administer the medicine knowing that it is a cure, no matter how painful it may be for the economy. The alternative is to let the cancer continue to spread while slowly creating more pain for those who can least afford to bear it.
Dude, that collage is f’ing hilarious.