Frank's Musings

The 2022 inflationary spike has not been caused by an overheated economy. If it were, an interest rate hike would be an appropriate remedy.

The pandemic has caused a slew of stresses on the worldwide economy, similar to a catastrophic weather event or astrophysical disaster. The appropriate government response to that sort of non-human strain or Act of God is to loosen regulatory restraints on society—allowing civilization to devise whatever coping strategies it can come up with.

Penalizing commerce and industry with large interest rate hikes will only exacerbate the dilemma that COVID-19 created. Even more than 14 years ago, Quantitative Easing is what the Fed should be doing.  Otherwise, our central bank will surely force us into a Depression.