Next Tuesday is the last Fed meeting for the year. Currently everywhere is pricing in for a interest rate cut. Will the inflation hawk do a No Action Talk Only again??
If he is truly an inflation hawk, then interest rates should stay for the market, and for Earth to have a breather. There is already a severe strain in the limited resources we have and many of the infrastructure to cater for this demand is not yet ready, especially for food and energy. Lowering interest rates again will spark a hike in demand for this already strained resources.
It will come a time where 2010 is where the great stagflation will take place, which will affect every single economy. I really hope that this is not the case. I hope that there's only a cut of 50 basis point for the discount rate, with no change to the main benchmark rate.
Sometimes, good policies need not necessarily be popular ones.
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