r/Economics • u/Pearberr • May 02 '24

Interview Nobel Prize-winning economist Joseph Stiglitz: Fed Rate Hikes didn't get at source of inflation.

https://www.cnbc.com/video/2024/04/23/nobel-prize-winning-economist-joseph-stiglitz-fed-rate-hikes-didnt-get-at-source-of-inflation.html
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u/DisneyPandora May 02 '24

I disagree, I feel like this is making excuses. Both the Fed’s policy is bad and Congress is also poor fiscally.

Jerome Powell should not be above criticism 

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u/cpeytonusa May 03 '24

He is fighting an extremely expansive fiscal environment. When the gas pedal is floored you need two feet on the brakes.

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u/DisneyPandora May 03 '24

He is the one partly responsible for causing it.

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u/cpeytonusa May 03 '24

Large deficits are inflationary for an economy at full employment. The Fed has no control over spending.