The fed has two central mandates - full employment and inflation control.
Full employment has generally been met, but inflation has gotten “out of the corral”. It’s going to take a lot of cowboys and lassos to reel it in. The longer we wait, the further distance those horses (inflation) are going to be away from the corral.
Trying to please everyone is just a bad idea. Take the caster oil and start the healing process.
While no one wants to go through difficult times, sticking our heads in the sand will not solve the problem. The economy is awash in cash from fiscal and monetary stimulus. Just yank the punch bowl.
In the meantime, a good plan would be to start mumbling non-sense to appease the crowds. If you need any help with this, give Alan Greenspan a call. He is highly skilled. And also, you might want to get out a ouija board to reach out to Paul Volker. Volker has some excellent experience in this department!
Now man-up and getup on that horse. Giddy-up!
