/biz/ - Business & Finance

>>54183798
Powell knows Burns massively fucked up and doesn’t want to replicate his mistakes:

>Burns raises interest rates
>market throws a shitfit
>Burns lowers interest rates
>market and inflation goes up
>Burns raises rates again
>market throws a shitfit
>Nixon calls Burns and bitches him out for fucking up the market
>Burns lowers rates
>Market and inflation go up
>repeat ad infinitum

Powell can keep bailing out depositors, but he won’t cut rates this year. He knows how bad it would be to replicate the Fed policy of the 1970s