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Michael Bostic's avatar

What we need is better policy out of congress to help combat inflation rather than to just sit there and let the fed do the handy work. The rate hikes have done little to bring down inflation while actually boosting demand regressive stimulus to those with money by adding to deficit spending. I like to think easing supply chains have been more of a factor in the declining factor of inflation than the feds rate hikes.

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Marcin's avatar

Thank you, great article! I think I've read a bit of research about optimal monetary policy rules, but I've never seen and thought about the rate of changes as something crucial. Your article made me thinking about it. While I still need some time to process it through, I agree that it not only matters what is the terminal rate, but it also matters how we get there and how we communicate this. I guess it may depend on environment: leverage, labor market strength etc.

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