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   From: biden.thieves@outlook.com   
      
   Yak  wrote in news:ssnaqv$kqie$25@news.freedyn.de:   
      
   >  Editor's Note:   
   >   
   > This post was updated on February 26, 2021 with new data.   
   >   
   >   
   > Biden-voting counties equal 70% of America’s economic losers   
   >   
      
   Can the Federal Reserve keep raising interest rates and defeat the   
   nation's worst bout of inflation in 40 years without causing a recession?   
      
   Not according to a new research paper that concludes that such an   
   "immaculate disinflation" has never happened before. The paper was   
   produced by a group of leading economists, and three Fed officials   
   addressed its conclusions in their own remarks Friday at a conference on   
   monetary policy in New York.   
      
   When inflation soars, as it has for the past two years, the Fed typically   
   responds by raising interest rates, often aggressively, to try to cool the   
   economy and slow price increases. Those higher rates, in turn, make   
   mortgages, auto loans, credit card borrowing and business lending more   
   expensive.   
      
   But sometimes inflation pressures still prove persistent and require ever-   
   higher rates to tame. The result — steadily more expensive loans — can   
   force companies to cancel new ventures and cut jobs and consumers to   
   reduce spending. It all adds up to a recipe for recession.   
      
   The Fed's favorite inflation gauge shows prices accelerated in January   
   And that, the research paper concludes, is just what has happened in   
   previous periods of high inflation. The researchers reviewed 16 episodes   
   since 1950 when a central bank like the Fed raised the cost of borrowing   
   to fight inflation, in the United States, Canada, Germany and the United   
   Kingdom. In each case, a recession resulted.   
      
   "There is no post-1950 precedent for a sizable ... disinflation that does   
   not entail substantial economic sacrifice or recession," the paper   
   concluded.   
      
   The paper was written by a group of economists, including: Stephen   
   Cecchetti, a professor at Brandeis University and a former research   
   director at the Federal Reserve Bank of New York; Michael Feroli, chief   
   U.S. economist at JPMorgan and a former Fed staffer; Peter Hooper, vice   
   chair of research at Deutsche Bank, and Frederic Mishkin, a former Federal   
   Reserve governor.   
      
   More hikes expected   
   The paper coincides with a growing awareness in financial markets and   
   among economists that the Fed will likely have to boost interest rates   
   even higher than previously estimated. Over the past year, the Fed has   
   raised its key short-term rate eight times.   
      
   The perception that the central bank will need to keep raising borrowing   
   costs was reinforced by a government report Friday that the Fed's   
   preferred inflation gauge accelerated in January after several months of   
   declines. Prices jumped 0.6% from December to January, the biggest monthly   
   increase since June.   
      
   The latest evidence of price acceleration makes it more likely that the   
   Fed will need to do more to defeat high inflation.   
      
      
      
   --- SoupGate-Win32 v1.05   
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