"The Fed is Trying to Catch Up"

[KenH]

"What the Fed is attempting to do is raise interest rates both quickly enough and to levels high enough that they slow and eventually stop the inflationary updraft. But they also want to do so in a way that doesn't bring about a recession, which is a very difficult balance to strike.

Historically, most rate increase cycles ended in economic slowdown. Right now, if you see what's happening in equity markets all around the world, financial market participants and investors don't seem to believe that a soft landing is likely."

AIER economist Peter C. Earle appears on BBC News.

- 3 minute video at BBCW / 10 May 2022 / 10:00 PM / PETE EARLE INFLATION (streamslist.com)

 

[Earth Wind and Fire]

"What the Fed is attempting to do is raise interest rates both quickly enough and to levels high enough that they slow and eventually stop the inflationary updraft. But they also want to do so in a way that doesn't bring about a recession, which is a very difficult balance to strike.

Historically, most rate increase cycles ended in economic slowdown. Right now, if you see what's happening in equity markets all around the world, financial market participants and investors don't seem to believe that a soft landing is likely."

AIER economist Peter C. Earle appears on BBC News.

- 3 minute video at BBCW / 10 May 2022 / 10:00 PM / PETE EARLE INFLATION (streamslist.com)

You mean after all that money printing Powell wants to control …