Month: August 2022

In the 1970s the Fed led by Chair Arthur Burns shifted policy from hiking rates to fight inflation to cutting rates to fight recession. The result of this policy change was inflation growth slowed for a few months but then reaccelerated to higher levels causing more pain, more rate hikes and more recessions.

“This is the prospect of a flip-flopping Fed…” injected Jon Ferro of Bloomberg. (1)

“People are looking for the fed to cut as soon as they stop raising rates in order to counter a slowing economy” adds Lisa Abramowicz