...it’s finally getting through my thick skull that the Fed’s superpower is to slow economic activity in order to (eventually) stall rising prices.Much worse numbers than the CPI yesterday and much higher than expected. Diesel is making everything more expensive as Trump’s foolish war continues to hurt all American but the uber rich. https://t.co/unWLxNvzkp
— Ron Filipkowski (@RonFilipkowski) October 15, 2026
I mean, I knew that, intellectually, because I lived through the Volcker era, when states had to repeal their usury laws so credit cards could raise interest rates to 25%. (Yes, Virginia, there was a time when such interest rates were illegal. O, what a paradise it seems.) But the source of inflation now is painfully obvious: the Iran war, and Trump tariffs.
And it seems the only thing we can do is expect the Fed to make economic activity more expensive.
No wonder people are so pissed off.
Russell Vought said early on his goal was to inflict trauma on the federal workforce. I think Trump's entire economic agenda, other than theft, is to inflict trauma on the general public.
ReplyDeleteIf it wasn’t, how would you tell the difference?
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