Why the Fed May Have to Force the US Into Recession

Frances Donald, chief economist at Manulife Investment Management, and BMO Capital Markets head of US rates strategy Ian Lyngen explain the biggest economic challenges facing the Federal Reserve as the central bank's 2% inflation target remains elusive. Frances and Ian speak with Tom Keene and Paul Sweeney on Bloomberg Radio.

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[xxyyzz]

I’ve lived through two bouts of inflation and six recessions. The inflation was always 10x more painful than any recession.

[Fear.of.the.Dark.]

Fed is doing exactly what they are aiming to do. They started this loose monetary conditions from last fall. They say they care about inflation but if you read Powell's commentaries over last six months, you know he is a dove by heart. He has been itching to cut rates for some time and was late to raising rates 2 years ago.

[awilliams]

wake up smell coffee the system is rigged snow white

[Sonyemman]

Aw man not enough people are losing their jobs darn it 😢

[matthewestep]

They don’t have to. They’re basing their moves on what benefits rich people not the average person. They could fix all of this with taxes but they’re too chicken sh*t.

[jeffreycheng]

"The Federal Reserve System is not Federal; it has no reserves, and is not even a system at all. But rather an international criminal syndicate."- Eustace Mullins.

[tonyotag]

keep rates higher for longer; is ok as long as cpi and ppi are elevated

[kakkamutta]

Fed is not forcing recession ....
Recession is the one forcing the Fed... force is unbearable to Fed, about to break... waiting for a video on how to survive in recession...

[windsongwong]

No brainer …..that you can print trillions of dollars and have no recession and have great economic growth.
Then every country will start printing monies.
Look at Argentina.
That’s what happened when you print monies.

[Colbe-lxfb]

Good point.. the market has been crazy lately, a few surprises here and there.. with all the global happenings taking place I think it’s safe to say that a severe global recession is looming..

[Thomas_Paine]

Waiting for the Rug pull on Real Estate and Cars. these will plummet by 50 - 80% soon.

[xxyyzz]

transitory —> “retiring that term” and it’s not transitory. Next up is “soft landing” —> “bump in the road” —> “retiring these terms” as inflation fails to cool further and it becomes clear R* is very much elevated.

[georgemaximus]

The answer is the fed printed so much money it’s beyond comprehension. The money is massive and of course there is going to be inflation. This tiny amount of rate hikes are definitely not enough to control inflation after so much money being printed.

[KK-pmud]

If Congress were responsible, the Fed wouldn't have to do that.

[praveenspike]

Economic reset is called as a recession. The world is interlinked if you cut the link one needs to know who is the weak link. If the weak link is isolated the recession will not happen. So Bloomberg who is the weak link in this scenario? Now that is the the question for all economists.

[jgborn]

She said “ downward surprises for growth”…wtf is that? Interest rates going down and creating growth? No surprises there, that’s how the system is designed. Not sure what this means.

[mikewatts]

They have been cooking the books on jobs report for years. There are millions of 15:00 hr jobs for high schoolers .

[welcome]

insurance (+ 22%) which is an outlier.

[danieldinnell]

thx dems, remember a time when the borders were secure, the world was at peace, gas was cheap and plentiful, groceries were affordable, mortgage interest rates were 2.5%, and the economic outlook was optimistic. I sure do miss those good old days from just over three years ago.

[HagiaFantasia]

I'm ready for more stimulus checks and ubi