Fed Begins Preparation for Next Recession

The following excerpt is from an article that originally appeared on 2nd Amendment Insider

With the next recession on the horizon, the Fed is scrambling to prepare the economy. But the strategy they’re considering will take us into uncertain territory…

Peter Reagan, December 21, 2017

Before the next severe downturn comes, the Fed recognizes they need to get ready. But with interest rates near 0% today, they won’t be able to rely on cutting rates when things get bad. So now, they’re considering something a little drastic…

Typically, the Fed targets a specific rate of inflation. But now there’s talk of “price-level targeting”, in which the Fed would target a specific price level instead and allow inflation to run too high for a time.

Here’s the catch…

The Risk of Price-Level Targeting

This strategy is relatively untested and has not been adopted in 85 years, when it failed in Sweden. Additionally, Chicago Fed President Charles Evans has characterized this tactic as “extreme” and “too

Click here to Read this Entire Story on 2nd Amendment Insider


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