Comment on Powell sees tariffs raising inflation and says Fed will wait before further rate moves
shortwavesurfer@lemmy.zip 1 day ago
I actually watched the speech and one bit I found to be quite interesting is that he said if the two sides of the Mandate conflict they will deal with the side that is out of whack the most. So if unemployment were to massively increase, they would cut interest rates and accept a slightly higher inflation to bring the unemployment down. And if inflation went crazy and the jobs market was only slightly affected, they would raise interest rates until the inflation came back down.
potoo22@programming.dev 22 hours ago
That seems reasonable. It’s also possible for both high inflation and high unemployment. In that case he’d be like ¯\_(ツ)_/¯
shortwavesurfer@lemmy.zip 8 hours ago
Based on his comment yesterday, he would find out which one is moving faster in the wrong direction and be more aggressive on that side of the mandate. If they are both rising, but one is rising faster than the other, then he would focus on that side first.