“Hike til it breaks, cut til it inflates.”

The Fed Is Finally Seeing the Magnitude of the Mess It Created

Ryan McMaken
MISES Institute

“Now, thanks to Powell’s mistakes, price inflation is supercharged, and even he admits it could take years of economic stagnation or decline to bring it under control. The sheer level of ineptitude would be shocking if it were not so common for central bankers. For those people, their entire “strategy” can be summed up—as Peter St. Onge puts it—”Hike til it breaks, cut til it inflates.” There’s not much more to it than that. That’s the best all those PhD’s at the Fed have managed to come up with. Thanks to Powell and Yellen and Benernake and Greenspan, we’ve living with the consequences of the Greenspan Put, followed by a decade of QE, followed by the “panic and print money” mania of the past two years. It’s great that Powell is finally figuring out what the real world looks like. Unfortunately he’s years behind.”


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