On one hand the Fed is the furthest behind the curve on inflation that they have been since 1951.
On the other hand, US economic growth is already decelerating, so to fix this would be to tighten policy into economic softness, which historically works poorly. pic.twitter.com/Yny3oY6s7K
— Lyn Alden (@LynAldenContact) January 29, 2022
And few economists consider the natural resource capex cycle for their inflation/disinflation models, and instead primarily look at the demand side of things.
The 2020s are a lot more spicy than the 2010s on the supply side.https://t.co/j6UCo07hpChttps://t.co/C77RDtCOBs
— Lyn Alden (@LynAldenContact) January 29, 2022