Not since the 1970s has the U.S. economy faced such an ugly combination of a persistent energy shock, a looming recession threat and menacing inflation that stays stubbornly high — even in the face of a screeching slowdown in growth. This combination has the Federal Reserve, charged by law with both sustaining growth and curbing inflation, in a bind. It must balance the needs of protecting the economy from a downturn while protecting it against an upward spiral of prices — and doing either one can make the other far more difficult. (McClatchy, Sunday)
But the Fed is one of the biggest problems.
FEE Timely Classic
The Impossible Task of the Fed by Ernest G. Ross