Inflation and U.S. Monetary Policy
I am cautiously optimistic about inflation stepping down notably in the United States this year and next without a recession. The Federal Reserve is key to a 'soft landing, but it is not the only game in town. Congress and the White House have a role to play, particularly in lowering gas and energy prices. Lower tariffs and more immigration would help immediately too. Consumers would also need to become more price-sensitive and slow down their buying of some goods and services. And above all, we must get the global pandemic under control and freedom restored in Ukraine. We need skill among policymakers and some luck.
If anybody can get us across the finish line, it’s today’s Fed, White House, and Congress who have gotten us this far. It’s time to bring the recovery on home. Let’s do it!
Below is a video of a talk today on inflation and Fed policy. It was a private event, so I recorded this video at home. My slides are below the video.
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