Episode 5: Back to the Future?...or...1978-79 All Over Again?

Send us a textFed Chairman Jerome Powell has summoned the ghost of Paul Volcker, circa 1978, with a monetary regime that is hell-bent on generating PAIN, economic pain, as a means to "defeating" inflation. Powell has pledged to use the Volcker "playbook", draconian rate hikes that squelches final demand to bring it into line with lower supply, even if it means sparking a recession. But it goes further, as Powell cannot justify pausing the monetary tightening until there is DISINFLATION in ASS...