MacroVoices #361 Alex Gurevich: Jay Powell says, “Effects of tightening not yet felt.” Alex says, “No shit, Jay.”
Macro Voices
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The Mistake I Made in 2021 in Underestimating the Inflation Spike
Inflation managed to self-arrest before the Fed even started to really seriously come in the picture and stabilize despite that strong feedback. But now what we're seeing, we're seeing falling inflation and tightening policy. And that falling inflation as the money supply shrinks will inevitably cause the prices to fall when it's not accommodated. As inflation is falling and real rates are rising, they are right now actually quite positive real rates already.
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