A slowing economy and a declining currency... The Perfect Storm for the FED!
Do you lower rates to save the economy...but thereby trash the dollar even more...?
And will the thusly trashed dollar boost oil prices..and cause even more inflation...which will slow the economy further?
Or do you raise rates to save the dollar...stop inflation...and trash the Golden Age on Wall Street...?
My hunch is that the FED will have to raise rates...despite it's historic role as the "tool" of Wall Street...
It may take a bit more unpleasantness...but the FED will see the light sooner or later... Yes, the screams from Wall Street and Main Street will be shrill!
But this is an exact replay of the 1971 debacle... People have short memories... there are "history" books available for the enlightenment of the young and inexperienced...
