Tuesday, February 20, 2018

Yes, the Fed will cut rate in response to sudden inflation

Inflation, General Data Flow, Fiscal Stimulus, And Implications For Monetary Policy


We had a recent spike in  aggregated price index. The effect on the fed is to worry the ability of treasury to meet the coincident interest charges. The fed does not want to get caught raising rates in the middle of a swamp debt crisis. 

The fed is three color.

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