• stagflationary crisis

    From JAB@21:1/5 to All on Fri Apr 18 06:27:44 2025
    What makes Trump's attempt to bully the Fed especially ominous is the
    fact that the Fed will soon have to cope with the stagflationary
    crisis Trump has created. Trump's massive tariff increase will lead to
    a major inflationary shock:....

    Moreover, Trump has also created huge uncertainty by radically
    changing his policies every few days, which will depress spending and
    may well cause a recession:....

    As a consequence of Trump's destructive tariff regime, the Fed will
    soon face a dilemma. Should it raise interest rates to fight
    inflation, or should it cut rates to fight recession? It's a really
    hard call....

    Paul Krugman

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