audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I found this latest opinion piece by Paul McCulley of Pimco very interesting.
A Kind Word for Inflation
He argues that it makes no sense for the Fed to raise rates in the face of the current rising of commodity prices, because we are not in the same strong wage pricing power environment we were in the 1970s, and in fact the rising commodity pricing is pushing real wages down, not up. The Fed piling on would just compound the misery.
It's a fascinating comparison of the conditions in the 1970s versus today.
Audrey
A Kind Word for Inflation
He argues that it makes no sense for the Fed to raise rates in the face of the current rising of commodity prices, because we are not in the same strong wage pricing power environment we were in the 1970s, and in fact the rising commodity pricing is pushing real wages down, not up. The Fed piling on would just compound the misery.
It's a fascinating comparison of the conditions in the 1970s versus today.
Audrey