The Fed revisited some old financial records by hiking by 75 basis points today. This is a signal that they have thrown out whatever remains of the models that suggested that inflation is transitory, and they are hiking until something breaks. From a central banker’s perspective, this is the optimal strategy. Central banks are part of The Establishment, and inflation is an anathema to The Establishment. No central banker ever got fired for causing a recession.
Fed Panics
Fed Panics
Fed Panics
The Fed revisited some old financial records by hiking by 75 basis points today. This is a signal that they have thrown out whatever remains of the models that suggested that inflation is transitory, and they are hiking until something breaks. From a central banker’s perspective, this is the optimal strategy. Central banks are part of The Establishment, and inflation is an anathema to The Establishment. No central banker ever got fired for causing a recession.