Will The Fed Repeat 1970s Policy Mistakes? Authored by Vance Ginn via The American Institute for Economic Research, The Federal Reserve’s recent decision to cut the federal funds rate by 50 basis points to a range of 4.75 percent to 5 percent, despite inflation still exceeding its 2 percent target, bears alarming similarities to the monetary policy missteps of the late 1970s. Back then, under pressure to stimulate economic activity, the Fed loosened monetary policy too soon. What was the result? Inflation soared as high as, if not higher, depending on the inflation measure. This culminated in Fed Chairman Paul Volcker reining in the… — Continue at ZeroHedge News : Read More
