A POLITICO analysis shows that pandemic-era policies reversed the trend toward a widening income gap. The move away from them threatens those gains. Which way will Biden turn?
The most important bank in Silicon Valley has failed, triggering economic uncertainty nationwide. To blame: tough-talking tech dudes, a reckless Congress, contradictory monetary policy, and even Barney Frank.
Bank lobbyists believe the Fed may now be encouraged to press ahead with tougher rules that it was just beginning to discuss before SVB’s meltdown.
Our central bank operates by and for the financial elite.
Following Russia's invasion of Ukraine, the bond market's 5-10 year projection of annual chain-weighted personal-consumption-expenditures inflation reached 2.27%, raising concerns that another big shock could de-anchor inflation expectations. But since that didn't happen, the Federal Reserve now should reconsider its position.
A closer look shows we’re already approaching normal.
In the name of taming inflation, central banks have deliberately set themselves on a path to cause a recession – or to worsen it if it comes anyway. Worse, today's monetary-policy tightening will leave long-lasting scars, there are better responses.
Today’s inflation is driven largely by supply-side constraints, which call for supply-side solutions. Such measures would do as much to tame higher prices as limited increases in interest rates would, and they would not come at the expense of American workers and the broader economy.
Should Jerome Powell put on his Paul Volcker outfit and push interest rates through the roof? I would argue that, while modest rate hikes are appropriate, it is too soon to bring out the heavy artillery.
Democrats don’t lose elections because of rising prices. They lose when they cut spending and raise interest rates, sacrificing other goals at the altar of price stability.
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