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Originally Posted by h8kurdt

So what do you think will be the outcome of all this?

well, i don’t have a crystal ball, and if powell can’t tell how could i possibly, but besides universal pain and suffering from a global recession (lol) seems to me the marketwatch exchange with powell signals a risk for stagflation, which is when you have economic decline and high unemployment, but prices go up (instead of down due to lack of demand). stagnation + inflation.

last thing this happened here was in the 70s—actually started before the oil crisis and continued after. that’s what ushered in thatcherism and reaganomics.

eta: actually it was milton friedman’s monetarism that got us out of stagflation. but after the last recession there is not a lot of room to cut interest rates and stimulate the economy.