Austan Goolsbee Is Worried the Economy Is Overheating

The post-covid inflation was caused roughly 2/3s by supply issues and 1/3 by demand.

The Fed recognizing that the drivers were temporary, meaning they did not need to raise interest rates to crushing levels, and making clear that they were sticking to a specific interest rate target, helped create the soft landing, although the plane didn’t 100% land and instead stayed hovering above the ground. The landing was likely prevented by Trump-driven shocks.

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