We could even say that the economy has been on a ventilator since 2009.
I totally agree with this. I would even say that the crisis was looming even without COVID-19. Now just imagine how much Fed has to raise the rate to curb inflation which is the highest in 40 years.
Whatever the rate of consumer price inflation is, the interest rate needs to be higher than that. That's what it will take to bring consumer price inflation to heel.
The question is how long will it take before interest rates reach that level. We're screwed no matter how long that time is, so we may as well get it over and done with. The Fed, on the other hand, doesn't see it that way, so it will take its time in hiking interest rates thinking it's doing the right thing. But it's not.
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