Powell’s narrow path would avoid routes taken by Burns, Volcker

Bloomberg/Rich Miller/1-29-2023

“Ex-Fed chief Burns let inflation get out of control in the 1970s by failing to keep monetary policy tight enough for long enough to permanently beat back price pressures. Volcker then conquered double-digit inflation in the 1980s, but the victory came at an enormous expense: A painfully deep economic downturn that pushed unemployment above 10%.”

USAGOLD note: As long as Powell keeps the lending rate below the inflation rate, he’s a Burns.