Hot Economy, Rising Inflation: The Fed Has Never Successfully Fixed a Problem Like This – WSJ

The Federal Reserve is setting out to do something it has never accomplished before: reduce inflation a lot without significantly raising unemployment.

Central bank officials think it is possible with calibrated interest rate increases that slow booming demand just enough to take steam out of an overheated economy. But even one of the Fed s closest allies, U.S. Treasury Secretary Janet Yellen, sees the risk of failure. It will require skill and also good luck, the former Fed chair said in public comments in Washington last week.

During the past 80 years, the Fed has never lowered inflation as much as it is setting out to do now by four percentage points without causing recession. In this case, the central bank will need a number of factors out of its control to break its way.

via www.wsj.com

ha. Ha! HA! It will never happen!

There. I’ve done all I can do to cause the Fed to steer the economy toward a soft landing. You may think that’s nothing, but don’t underestimate my metaphysical, psychic powers of anti-psychokenisis. Google the PK Man by Jeffry Mishlove. Stranger things.