The Fed is effectively “fighting the last war,” BofA global economist Ethan Harris said…. The next recession could come courtesy of the Fed

Federal Reserve officials could be placing too much emphasis on the past when trying to guide the U.S. economy into the future, according to a Bank of America analysis.

https://www.cnbc.com/2021/10/21/bank-of-america-says-the-fed-is-playing-with-fire-by-downplaying-inflation-and-needs-a-new-playbook.html

Central bankers are in a precarious spot in this chaotic pandemic economy. U.S. and U.K. consumers are grousing about rising prices and want some relief. But if government officials give it to them by raising interest rates, they may set back the recovery. It wouldn’t be the first time an errant move by a central bank triggered a recession.

https://www.washingtonpost.com/business/on-small-business/the-next-recession-could-come-courtesy-of-the-fed/2021/10/21/222fc64e-3247-11ec-8036-7db255bff176_story.html

 

 

 

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