So sayeth the great Oliver Hardy to his equally talented sidekick, Stanley Laurel, in countless classic films. With only a few minor changes, the same could be said to those responsible for our macro-economic well-being. Sure, as we stated often, no playbook for the post-COVID economic recovery existed, so missteps were inevitable. But some were not. Washington’s massive and ongoing fiscal largesse in recent times and the Fed’s monetary spigot, now turned off but wide open for far too long, amounted to pouring unneeded fuel on the inflationary fires. The Fed now is responsible for putting out those fires, but when will the Fed get a handle on the problem and at what cost to the economy?
Continue reading ““Well, here’s another nice mess you’ve gotten me into.””