Want to bring down inflation? The great dilemma is this: The only real options are to be patient, or cause a recession.
It is a pick-your-poison environment for the Biden administration and the Federal Reserve, who face public discontent over economic conditions — and the risk that discontent would only get worse if the alternative was a new recession.
But the measures that would be needed to bring inflation down more rapidly would risk sending the economy into a tailspin.In the decades after World War II, episodes of inflation have ended when the Fed took steps to tighten the money supply, causing recessions. In the most extreme example, Fed Chair Paul Volcker engineered a steep downturn in the early 1980s that ended the double-digit inflation of that era — but at the cost of double-digit unemployment that pummeled President Reagan's popularity.the goal is a soft landing. The Fed is looking to move toward higher interest rates gradually, not with the kind of shock Volcker engineered.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
This New Tinted Sunscreen Had a Wait List of More Than 2,500 PeopleLet's just say true-to-skin-tone shades were achieved ☀️
Consulte Mais informação »
Trainer says cops in Floyd case taught to begin CPR, not wait for paramedic'If you can't detect a pulse after about 10 seconds, then you should begin CPR,' Officer Nicole Mackenzie testified.
Consulte Mais informação »
Spring car buyers still facing longer wait times and higher pricesAutomakers are starting to crank out more vehicles, as the computer chip and parts shortage finally eases. But, it could take months before things get back to normal.
Consulte Mais informação »
Jodie Sweetin shares how Bob Saget taught her to cope with grief with humor'It’s this reminder that life isn’t waiting for you to finish processing before it moves on to the next thing. And that’s OK.'
Consulte Mais informação »
Developing Countries Brace for Impact From Fed Rate IncreasesFor developing countries, the Federal Reserve’s battle to squelch U.S. inflation with a series of rate increases this year stirs a mix of hope and anxiety
Consulte Mais informação »
Con Edison bills surge in January, prompting outcry from New YorkersConEd customers are crying foul as energy bills double, in another layer of inflation nation.
Consulte Mais informação »