Inflation/RecessionAs oil prices fall, and they've fell now well into the Feds and the WH's target zone,
one would think that it might have a softening effect on the need to be aggressive
with their hikes. They say its all data dependant and oil was their biggest concern
with its inflationary impact.
This is where it gets interesting as both the WH and the Fed would be loathe to
overkill and cause a severe recession. Wasn't the desired outcome to just to take
inflation down enough to achieve their "soft landing" without overeaching?
They needed to send a message and I think they have. The response has been
exactly what was intended so now its how the data will be interpreted and how the
response will be judged. With an impending mid term still hanging in the balance,
the next move will be critical for all concerned.
Great posts from you gentlemen and much to think about.
MS