Is the Federal Reserve facing a hopeless situation?
With Jerome Powell existing and Kevin Warsh coming in as the new Fed Chair, he must walk a tight rope across an already strenuous economy. Is the situation hopeless? This seems a fair question given that any action the Fed takes could lead to dire circumstances. Inflation remains elevated, fiscal debt and deficits are out of control, yields are rising in the bond market to compensate for these risks, and the American consumer is running on fumes. Raising rates increases pressure on consumers, banks, and the federal government. Holding rates steady means waiting until something breaks…
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