If the Fed actually overtightened, it was purely by chance. They actually want enough looseness to keep a core inflation rate of about 2% (slow devaluation of our money, punishing savers and people who declare their capital gains on their taxes).
If the Fed actually overtightened, it was purely by chance.
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If? I think its pretty obvious the Fed overtightened. This is, by and large, the POWELL PLUNGE.
The Fed shouild have stepped back to see what effects these hikes were having before they pressed ahead. This is not the first time the Fed has taken a ‘Ready, Fire, Aim’ approach. Their track record is not an admirable one at all.
Historically, 2% inflation is very low. I survived mortgage interest rates at %16 but I don't want to revisit that.