How will everyone react to a Fed-induced recession?

Some thoughts on the similarities and differences between now & the 1970s.

Why do consumers keep spending so much money?

Two reasons inflation has remained elevated.

Some questions I have about Fed policy.

6 questions I’m pondering at the moment.

How is the government going to afford higher interest rates on its debt?

Following the Great Financial Crisis of 2008 a number of macro doom-and-gloomers began predicting a collapse of the U.S. dollar. The Fed was “printing” trillions of dollars. Interest rates had never been that low before. It was an appealing narrative if you were someone stuck in the negative feedback loop of the biggest economic crash…