Nå skal økonomien blåses opp til mellomvalget 8 november. Dette blir langt viktigere enn andre nøkkeltall fremover.
———
The tightening campaign, along with a bear market in stocks, produced a technical recession which delivered the justification the democrat-led Congress needed to push through more government spending, in the name of “inflation relief.” This is their coveted Build Back Better plan, now on path to be funded.
In short, the plan that created inflation is now going to be super-charged under the label of the “Inflation Reduction Act.”
What should we expect? Inflation.
And we should expect the Fed to do nothing to counter it.
They told us they would be shrinking the balance sheet by $95 billion at this point (two months into their quantitative tightening plan). They’ve done just a third of that plan.
So, we should expect inflation to persist, just without the headwinds of idle threats to contain it, from the Fed. And with nearly a trillion dollars of new government spending coming down the pike, on economically transformative spending, the economy will be hot.
