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Post By
Late Great Donald Blake 
Moderator

Member Since: Sat May 17, 2008
Posts: 7,517
In Reply To
bd2999 
Moderator

Member Since: Sat May 17, 2008
Subj: Right, that's all the FED can do.
Posted: Wed Jun 22, 2022 at 11:39:03 am EDT (Viewed 106 times)
Reply Subj: Re: Funny that you've neglected to mention Jerome Powell's thoughts on wages.
Posted: Wed Jun 22, 2022 at 10:58:39 am EDT (Viewed 158 times)

Previous Post

Not supportive of that but the Feds job should be to thread a needle and cause minimal damage to individuals jobs while reducing inflation. It rarely works out that way though but that is always the goal. 

I mean the problem is inflation is already hurting people and the near term solutions for dealing with the problem are not numerous. You either let it play out or take some sort of action in an attempt to reduce the problem. 

That solution causes other problems but at the macroeconomic level all actions are going to have some consequences for different parts of the population. 


But it's a relatively modern (post 80s) belief that the only economic interventions or hedges against inflation are the purview of the FED.  They'll TRY to thread a needle, but if push comes to shove, the FED will be more than welling to push us into a recession and suppress workers wages in order to stem the time.  And the FED has very few very broad tools to use.  As I've said there are a multitude of potential solutions or at least abatements that Congress could pass and things Biden himself could do in terms of EOs and general pressure in both the short and long term.   They for one actually have to BELIEVE they should.  Bidens primary strategies have orbited leaving it all to the FED or begging the Saudis.

If you like compare FDR's approach to dealing with economic dire straits vs our current president.  They have pretty oppositional attitudes, and FDR was elected 4 times.


cheers,
--- the late great Donald Blake 



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