
MacroVoices #293 Cullen Roche: Debt Ceiling, Interest Rates & Stagflation
Macro Voices
00:00
Is the Fed Going to Fight Inflation or Will It Support the Economy?
Inflation by historical measures is not, you know, double digit stagflation. But it feels like an entrenched stagflation because the underlying rate of growth is relatively low. The standard monetary policy response fight inflation is to increase interest rates. So let's imagine we have a combination of inflation and at the same time a stagnant, weak economy. What do you think the fed is going to do in terms of monetary policy under those circumstances? Are they going to fight the inflation, or are theygoing to support the economy? Or are they going to be naive and try to do both? It's starting to look like they're going to, at least i think they're goingt move somewhat cautiously
Transcript
Play full episode