Why Jerome Powell did the 180 degree turn in monetary policy in December 2018, by Danielle DiMartino, former advisor at the Dallas branch of the FED.
The reversal in monetary policy was to lower interest rates. And thar’s the catch 22. He can’t raise interest rates because the debt already out there would be jeopardized? So, the alternative is to lower interest rates, which only stimulates more borrowing?
And the more borrowing is creating liquidity problems, so the Fed needs to print money to resolve the liquidity problem? No one is explaining what the exit strategy is.
AC