Would Treasury Secretary Janet Yellen call Federal Reserve Chairman Jay Powell into her decorated, historic office to demand the central bank rescue the Treasury market? If she did, there’s already precedent. An economy recovering from the worst sort of setback aided by massive fiscal intervention set loose inflation expectations on the rampage.
Many influential people began to fear it was recovering too quickly.
"In response to a request for a statement as to present business and credit conditions Mr. Williams said…in March…he was fearful that the recovery movement was proceeding too rapidly and that it might turn into a disorderly upward movement which might result in price spirals and dislocations which would be distinctly harmful.”
Read Full Article »
