Comment posted by JerseyWhale

No one wants to hear this but he is correct.

Fed monetary stimulus and US govt stimulus pushed $5 trillion of excess liquidity into the system.

They need to pull this back out to get us back to long term trend line levels now that the economy has reopened.

The liquidity push worked to cushion the economic impact of irrational COVID lockdowns and other irrational government policies around the pandemic.

To return to normal, the inflation wildfire needs to be extinguished which isn’t easy without a sustained effort over time by the Fed.

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