> The lawmakers pressed Fed Chair Jerome Powell to “avoid engineering a recession that destroys jobs and crushes small businesses.”
Damned if you do, and damned if you don't. The Fed doesn't have a lot of tools to slow inflation. If inflation keeps rising, there's going to be looting and violence when people can't afford rent, food, or gas to get to work. Jobs and small businesses won't like that either.
In the meantime, the politicians can pretend they're looking out for the little people.
I think the bigger problem might be many banks can’t handle the rates moving up so quickly.
I didn’t understand all the details but some banks were taking short term money and locking in long term commitments at what is now not a very good rate.
Damned if you do, and damned if you don't. The Fed doesn't have a lot of tools to slow inflation. If inflation keeps rising, there's going to be looting and violence when people can't afford rent, food, or gas to get to work. Jobs and small businesses won't like that either.
In the meantime, the politicians can pretend they're looking out for the little people.