Yeah. The Fed's choices are either inflation or recession. They'd rather have a recession, which is easier on poor people. Some lose their jobs, but there are programs in place to help. Dealing with inflation is harder for them.
The recession hurts rich people more than poor people, at least in absolute terms. It resets the economy by a few years. Which is reasonable, because the economy has been advancing too fast for too long, driven in part by the Fed giving away money.
A recession was inevitable even without that. It's surprising we got this far in the pandemic without one. And oil spikes caused by war and sanctions will also provoke a recession. So it's not a great time to have a recession, and the Fed will keep an eye on that, but their top priority is to keep inflation under control, not to advance the GDP.
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[ 2.7 ms ] story [ 12.3 ms ] threadThe recession hurts rich people more than poor people, at least in absolute terms. It resets the economy by a few years. Which is reasonable, because the economy has been advancing too fast for too long, driven in part by the Fed giving away money.
A recession was inevitable even without that. It's surprising we got this far in the pandemic without one. And oil spikes caused by war and sanctions will also provoke a recession. So it's not a great time to have a recession, and the Fed will keep an eye on that, but their top priority is to keep inflation under control, not to advance the GDP.