On The Money - How a federal debt default could affect you
- February 6, 2023
- Eric Swanson, economics, The Hill, Feb. 6, 2023
With inflation still near 40-year highs and the U.S. economy slowing, the Fed’s aggressive rate hikes have fueled concerns of a central bank-induced recession akin to the one triggered by former Fed Chairman Paul Volcker during the 1980s. While Volcker’s rate shock ended two decades of rising inflation, it did so at the cost of a severe recession. … “Inflation looks like it has already peaked and never got near the 14.5 percent peak reached in 1980, so the Fed will not have to raise rates as high as it did back then,” said Eric Swanson, an economics professor at the University of California, Irvine.
For the full story, please visit https://thehill.com/newsletters/3846432-on-the-money-how-a-federal-debt-default-could-affect-you.