6min chapter

Forward Guidance cover image

Did The Fed Just Back Down? | Joseph Wang & Michael Ippolito

Forward Guidance

CHAPTER

The Fed's Decision to Reverse Course

The Fed's contribution to federal tax receipts has absolutely dropped off a cliff here. Jack, I wonder if you could pull up one of those charts that we have about the interest rate expense of the government. How long is this really sustainable? And at what point does the Fed come under political pressure here to reverse course? The People's Bank of China and China adding liquidity. How might that impact the Fed's fight against inflation?

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