Lloyd Financial Group ·
The Federal Reserve Made A Mistake Hiking Interest Rates... Government Recession? Luke Lloyd RFDTV
I’m going against the grain here. If the Federal Reserve hikes interest rates at 2:00 PM today AND continues unloading its balance sheet, I think they could be making a major policy mistake. My take: **we’re in a growth-flation environment—not stagflation.** That distinction matters. We still have economic growth, but we’re also dealing with persistent inflationary pressures. The answer shouldn’t automatically be to slam the brakes on the economy. My concern is that the Fed could take an economy experiencing **growth + inflation** and push it toward **stagflation—higher prices with weaker economic growth.** Higher rates make borrowing more expensive. Reducing the Fed’s balance sheet pulls liquidity out of the financial system. If you do too much of both at the wrong time, you can potentially slow the economy without solving the underlying sources of inflation. That’s the risk I see. Sometimes the biggest mistake in monetary policy isn’t doing too little. It’s doing too much, too late. I broke down my take on RFD-TV today. Now we wait for 2:00 PM. #FederalReserve #InterestRates #Inflation #Economy #Stagflation #Investing #RFDTV #FinancialPlanning
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