Inflation or recession? The US Fed tries to untangle a financial mystery

A Weekly Standard op-ed examines the way the Fed is trying to tame a $4-trillion quantitative easing problem in case another recession hits.

The piece quotes Desautels professor Reuven Brenner’s withering criticism of current policies in American Affairs (in which he likens them more to astrology than science) but allows that the Fed is trying to make sense of a vastly confusing set of circumstances: low unemployment should be pushing wages and inflation upward, but it’s not happening.

Essentially, the article makes the case that we might be headed for rising inflation — or for another recession.

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