The Federal Reserve complex balance, between decisions and consequences.
21/09/2022 17:45 • MACROECONOMICS"The Federal Reserve must continue to raise interest rates and keep them at a higher level until it is sure that inflation is under # control, aware that such a process risks causing some pain to families and businesses. businesses ".
The #FED continues with the tough line, but this is a very delicate process, and if not carefully counterbalanced by the same amount of money, in my opinion the blanket is short.
I'll explain:
With this hard line,
IF applied to the letter (fierce rise in interest + QT),
the FED would push the US to have a very high risk of #social unrest in the coming months,
unless the government begins to massively create economic aid, doing a bit of the so-called "Three-card Monte" between them and the FED.
Any choice that does not include #massive economic help, such as stimulus checks,
would lead to the pure and hard demand destruction(not moderate),
and it would NOT be convenient for the US government either, due to the record #debt it holds
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