The Fed: We need to aggressively raise interest rates in order to control inflation! Also The Fed: Recession ahead! Which is it? Ordinarily the job of the central bank is to cut interest rates when there is risk of a recession and raise interest rates when inflation gets too high. But now we’re being told that we are at risk of inflation AND recession at the same time. What is the Fed supposed to do under these circumstances?
Josh, check out parity economics at NORM national organization for raw material economics as another way to deal with the problem.