The Fed cannot actually fight inflation with its current policy because negative real rates (nominal rates below inflation) in a rising-rate environment cannot suppress inflation; Powell is raising rates solely so he has something to lower when recession arrives.
causalpending
Speaker
Matthew PiepenburgEvidence Quote
“you can't fight six or nine or ten percent inflation with five or six percent interest rates what he's really doing is raising rates so he has something to lower when there is a recession”
Created: 8/10/2026, 11:02:52 PM
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