Fed plans to raise rates as soon as March to cool inflation

[Saint Milei]

Bloomberg had an article saying that the coming recession will be "Long, Moderate, and Painful".  It will be Long because it will take time to remove the inflationary pressure so tight money will be around for a while.  One risk of course is the coming recession might be several mini-recessions based on stop-go if the Fed takes it foot of the brakes too early leading to another round of inflationary surges.

"moderate"

Lol they wont raise rates to the level they should be

[Saint Milei]

Do you all think it is time current Federal Reserve Chairman Jerome Powell should take Paul Volcker's approach in taming inflation for good, even if it means we suffer a sharp, deep recession in the short-term? 

The depression would be painful but necessary.

[Saint Milei]

Personal Savings Rate 3M Moving Average ⁦hits record low.  Pretty much all the cash handed out during COVID-19 is being burned up.  Good news on the inflation front.  Pretty soon cash for unsustained consumption will run out and prices will finally stop increasing and then start to fall.

I think this chart only goes through July, but this seems to suggest a lot of COVID-era savings remain, notwithstanding low savings rates now (chart is excess above February 2020 total savings).

Excess savings? Americans don't save to begin with, but when rates are so low, what do you expect. The fed is in for a ride awakening.

[Saint Milei]

It does seem like since 1970, we have experienced an era of permanent decline. A "recession" or two will occur every decade, but the economy will remain stagnant for most of the decade. No real growth. Savings is a myth. Prices going up. It's unfortunate. The fed changed the nature of the world

[Saint Milei]

So will atlas admit we are in a recession?

https://twitter.com/AlanReynoldsEcn/status/1603785731587166209?t=92BefM30_KPCnEn...

[Saint Milei]

So will atlas admit we are in a recession?

https://twitter.com/AlanReynoldsEcn/status/1603785731587166209?t=92BefM30_KPCnEn...

It's not like there is anything we can do about the Fed at this point. If there is, that would be good to know.

Raise interest rates to double digits.