![]() But on economics, as on everything else, a terrible thing has just happened.ĭonald J. So we are very probably looking at a global recession, with no end in sight. In fact, you can bet that the Fed will lose its independence, and be bullied by cranks. Effective fiscal support for the Fed? Not a chance. Now comes the mother of all adverse effects - and what it brings with it is a regime that will be ignorant of economic policy and hostile to any effort to make it work. ![]() But what if something bad happens and the economy needs a boost? The Fed and its counterparts abroad basically have very little room for further rate cuts, and therefore very little ability to respond to adverse events. ![]() only thanks to extremely low interest rates. It’s true that we’ve been adding jobs at a pretty good pace and are quite close to full employment. What makes it especially bad right now, however, is the fundamentally fragile state much of the world is still in, eight years after the great financial crisis. Under any circumstances, putting an irresponsible, ignorant man who takes his advice from all the wrong people in charge of the nation with the world’s most important economy would be very bad news. Still, I guess people want an answer: If the question is when markets will recover, a first-pass answer is never. The disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear. When might we expect them to recover?įrankly, I find it hard to care much, even though this is my specialty. It really does now look like President Donald J.
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