> Those times are over. We can not slash rates without inflation becoming a larger issue.
If unemployment is pushing 8% they certainly can.
> Once inflation catches a spark it doesn't just go out because basically everything economic in terms of a recovery is inflationary.
This is nonsense. If the economy is in recession and unemployment is at 6-8% then we won't be in a recovery and it won't be inflationary. It will wind up blowing up another asset bubble, but they don't care about that, which is why economists distinguish between inflation and housing appreciation.
The pandemic recession was way too brief and v-shaped and was heavily cushioned by all the stimulus. That won't happen next time. That isn't the new pattern of recessions.
If unemployment is pushing 8% they certainly can.
> Once inflation catches a spark it doesn't just go out because basically everything economic in terms of a recovery is inflationary.
This is nonsense. If the economy is in recession and unemployment is at 6-8% then we won't be in a recovery and it won't be inflationary. It will wind up blowing up another asset bubble, but they don't care about that, which is why economists distinguish between inflation and housing appreciation.
The pandemic recession was way too brief and v-shaped and was heavily cushioned by all the stimulus. That won't happen next time. That isn't the new pattern of recessions.