DOUBLE DOWN

“Life is like a game of cards. The hand you are dealt is determinism; the way you play it is free will.” - Jawaharlal Nehru

Did doubling interest rates, seemingly overnight, help or hurt the fight against inflation?

According to Nobel Prize-winning economist Joseph Stiglitz, the FED did not get to the core issue fueling inflation, which was the massive global supply chain disruption.

That may have been better served with time rather than overly heightened interest rates. He believes rates were artificially low and needed to be raised; however, he noted they went too far - too fast - too late and that the sharp rise in rates actually fueled inflation and made it worse. He also believes that as we go through massive global transitions and wars, having a slightly higher inflation target of around 3% makes sense if it keeps employment strong. (CNBC)