In the late 1960s, the Fed tightened aggressively in 1966, then encountered a mini credit crisis related to Regulation Q that caused a slowdown in housing, and prematurely eased into ongoing fiscal spending, allowing unemployment to flatline for 9 months before growth re-accelerated, triggering wage and core inflation spikes and another stock market cycle.
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Speaker
Julian BrigdenEvidence Quote
“they'd been tightening quite aggressively in '66...mini credit crisis...related to Red Q...slowdown in housing...prematurely eased...unemployment...flatlined for like nine months...average earnings took off core inflation went”
Created: 8/12/2026, 6:17:43 PM
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