Latest / Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes
Why the Fed Is Tempted to Repeat Its 1970s Mistake
In late August 2026, the Fed faces a hard call: core PCE inflation at 3.3 percent, real GDP growth down to 1.5 percent, and a bond market that keeps hearing 1970s echoes. Lucas and Luna drill into one specific decision—whether the Fed's hawkish turn, led by Governor Hammack, is the right medicine or a repeat of the Volcker-overdose mistake. They walk through the 1970s playbook, the lessons of the 1981 recession, and why Bessent's Treasury General Account gambit could complicate the Fed's job. Listeners get a concrete framework for judging rate hikes in a stagflation era, with a…
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