The Fed could be on the verge of repeating its 1970s mistake, Fed historian says
The Fed could be on the verge of repeating its 1970s mistake, Fed historian says
- May 8, 2023
- Gary Richardson, economics, CNN, May 8, 2023
-----
When the US Federal Reserve embarked on an aggressive campaign to quash inflation last year, it did so with the goal of avoiding a painful repeat of the 1970s, when inflation spun out of control and economic malaise set in. Inflation has been sliding, indicating that after 10 consecutive interest rate hikes, the central bank is experiencing some success. But Gary Richardson, a Federal Reserve historian, is worried policymakers — now contemplating taking a breather — still risk repeating mistakes from that era. “The more times you pause [rate hikes], the longer the problem is going to go on,” he told me. “That’s a worry here.” ... “If they don’t stop inflation now, the historical analogy [indicates] it’s not going to stop, and it’s going to get worse,” said Richardson, an economics professor at University of California, Irvine.
For the full story, please visit https://www.cnn.com/2023/05/08/investing/premarket-stocks-trading/index.html.
-----
Would you like to get more involved with the social sciences? Email us at communications@socsci.uci.edu to connect.
Related News Items
- Careet RightTrump's quest for more sway over Fed faces fresh hurdles
- Careet RightGas prices in SoCal soar as war in Iran continues
- Careet RightIndependent truckers feeling pain at pump with increasing as prices
- Careet RightFrom food to plastic: rising costs due to war
- Careet RightU.S. Department of Labor says economy lost 92,000 jobs in February