What Can the Fed do to Stop Inflation?
Just think about it the rates are at super low rates currently. What will happen if we start seeing high inflation? We could be in trouble because the Fed can't raise rates without hurting the economy. This really could destroy any kind of comeback for the economy if it happens because the Fed would be forced to raise rates a lot to stop run away inflation and that would kill the economy. Just a thought. I hate the idea of 20 % interest rates on cars like they had in the early 80s.
My thought is that the Fed by doing the quantitative easing is like pouring gasoline on a fire and not knowing how high the flames will be and if they got enough water to put it out. Quantitative easing is the gas and raising rates is the water.
I found a video on this quantitative easing
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