I'm pretty damn sure the Fed is asleep at the wheel. Powell is simply a scared dumbass, who won't raise the interest rate on his watch. I just hope we don't see another Volcker like we did in the early 80s. My god, it's painful just looking back.
This. And there is nothing the Fed can do at this point. They can raise interest rates to a billion percent, the government will keep spending far, far more than it takes in, with the Fed buying the excess, leading to inflation.
Are you an idiot? Jay Powell raised rates in 2018 as the economy was softening and had to cut rates in 2019 after giving a mea culpa. He doesn’t want to do that again — US (and global) economic data has pointed to softening and he’s not going to raise rates while that’s happening. If you look at the dot plot you’ll get a good understanding of when the Fed expects economic data to normalize and when they plan to lift off.
What is the point of telling someone they are an idiot? I read your complete answer. You have very little knowledge on how the actions of the Fed affect economy, but who cares.
If you lived through that period, you won't need any explanation. The cliff's note version is the inflation ramped up to nearly 20% by the time Volcker stepped in with his hatchet and slashed and slashed and slashed. That, in turn, created a big recession in the early 80s, which at the time seemed more painful than the Great Recession of 2008. Anyway, those idiots before Volcker were all asleep at the wheel much like Monsieurs Jerome Powell and his ilk are presently doing.