As Inflation Rages Fed Nickle & Diming Rate Hikes?

As Yellen finally concedes our raging inflation is going to get worse & linger longer than once thought, the Fed “signaled” an even faster pace of interest rate increases is coming. A reasoned “tweak” to the increasingly scary economy or a succumbing to political pressure as Dems eye mid-term Armageddon?

Alan Binder’s “Wish the Fed Luck as it Seeks a Soft Landing on Inflation” in WSJ notes how chairman “Powell’s post-pandemic optimism didn’t count on adverse supply shocks from the war in Ukraine.” The "new" official line, he notes, is that the Fed is committed to using every “tool” it has to control inflation; but the only nail left to it at this late date is upping interest rates. Instead of the next rate hike being a quarter point, then, maybe a half point increase is in the offing?

America is watching. “A recent Gallup poll,” Binder noted, found concern with inflation easily topping the list of nation’ economic worries.” Finally, the Fed is listening. But, is it too late once the inflation match has been lighted and the global “crises” keep fueling the flame?

Davd Soul