Peter Morici writes at MarketWatch that The Fed is still not doing nearly enough to shrink the money supply and reduce excess demand for labor, energy, metals, houses, and other goods and services…(MarketWatch)
To get inflation to 2%, the Fed should raise the federal funds rate at each meeting—approximately every six weeks—a full percentage point. Through the sale of Treasury and mortgage-backed securities, it should similarly push up the 10-year Treasury rate.
A recession is becoming increasingly likely but the longer we wait, the tougher will be the medicine when we face it.