Today’s episode addresses the question ‘Do we continue to let inflation run roughshod over our purchasing power, or do we raise interest rates and risk plunging our country into a recession?’ David states that Federal Reserve Chair Jerome Powell is fast approaching a grim crossroad in which he may have to raise interest rates in order to rein in out-of-control inflation. David explains how Venezuela recently had inflation approaching 40%, and its government decided to raise interest rates to 42% – and he feels that, soon, Jerome Powell may have to decide whether to take similar action. In other words, Powell seems to be destined to push the U.S. economy into a recession in order to rein in inflation. David cites Bloomberg Economics’ chief U.S. economist Anna Wang, who put the chance of recession in 2022 at 1 in 4, while a year from now it will go up all the way to 3 and 4. She sees a downturn this year as an unlikely event and says that a recession in 2023 will be tough to avoid. M...
Ep 190: Catch 22: Inflation or Recession?
June 22, 2022
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Today’s episode addresses the question ‘Do we continue to let inflation run roughshod over our purchasing power, or do we raise interest rates and risk plunging our country into a recession?’ David states that Federal Reserve Chair Jerome Powell is fast approaching a grim crossroad in which he may h...
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