Fmr. Pres. Duke
AHDuke99
Atlas Star
Posts: 24,021
Political Matrix E: -1.94, S: -3.13
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« on: August 16, 2022, 02:57:04 PM » |
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You can't have stagflation when the economy is at full employment.
This is an economy almost like nothing we have ever seen before. We have a strong job market, high inflation, shortages galore, yet we have seen two quarters of economic contraction.
I don't think the Fed is going to act as Volker did nor should it. We are already seeing inflation beginning to ease and the housing market come to a grinding halt. I suspect we will see another 75bps rate hike in September and that may be the last of that going forward, absent inflation picking up again.
I also suspect once student loan payments are reinstated, you will see inflation drop further as people will have less disposable income than they did before.
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