The Fed May Have to Kill the Stock Market’s Rally to Quash Inflation – Barron’s

December 16, 2021 by No Comments

Inflation will ease markedly while interest rates remain historically low and negative in real terms, even as the labor market returns to full employment, according to the latest economic projections from the Federal Reserve.

This would be the best of all economic possible worlds. Indeed, it is a forecast worthy of Dr. Pangloss from Voltaire’s Candide, who called this the best of all possible worlds—in contradiction to the reality around him. 




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