The U.S. government has engaged in a fiscal-monetary policy mismatch: the Federal Reserve is raising rates and doing quantitative tightening to fight inflation, while the administration and Congress are running historically high government spending as a percentage of GDP (outside wartime), putting stimulus and brakes on the economy simultaneously.
factualpending
Speaker
Michael SpenceEvidence Quote
“in many ways the the administration and Congress are kind of hitting the gas at the same time that the the Federal Reserve the central banks are trying to hit the brakes”
Source
Nobel Prize-Winning Economist Sees Era Of "Permacrisis" Ahead | Michael Spence (w/ Adam Taggart)— Adam Taggart | Thoughtful Money®Created: 8/11/2026, 1:51:12 AM
My Notes
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