There is an easy solution to inflation. It’s worked every time:
* raise interest rates
* stop deficit spending
The challenge is this will push the country into a deep, but short term recession. Reagan did this in 1980, the current occupant of the White House is tissue paper to Reagan’s steel.
“There is an easy solution to inflation. It’s worked every time:
* raise interest rates
* stop deficit spending”
True, but “stop deficit spending” has never happened here so we’ve never gotten to see it “work” and we won’t either.
Raising interest rates is what we are getting now, and it’s the Bond Market doing it, like always. That and the eventual rehabilitation of the supply chain will help. This bout will be much shorter than Carter-Nixon-Reagan’s fun.
The FED and the Bond market will be more worried about deflation than inflation within 3 years or so.