Common_Monk_6301

Common_Monk_6301 t1_iufpob2 wrote

Generally I don't agree with Krugman, but Yellen is simply not looking if she can't see it or she's looking only at lagging indicators that are more or less still positive at the moment. I think the Fed may be actually trying to start a recession as a way to moderate inflation and reset the economy. At the very least their policies are not friendly to economic growth which if miscalculated would lead right into a recession.

Also, Yellen has been severely wrong very recently on the issue of inflation. Not that that makes her wrong on this topic, but she's not infallible on the big issues.

https://www.bloomberg.com/news/articles/2021-10-12/yellen-sticks-with-transitory-view-of-higher-u-s-inflation#:~:text=Treasury%20Secretary%20Janet%20Yellen%20stuck%20with%20her%20assessment,pace%20of%20price%20gains%20to%20return%20to%20normal.

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