Jonathan Bydlak of R Street Institute writes about preventing stagflation:
The central bank eventually responded by shifting toward tighter monetary policy with the aim of reining inflation in. The problem, however, is that higher interest rates (and the impact of quantitative tightening) slow economic growth (as, indeed they are meant to do) and make an economic downturn more likely. A truly soft landing is hard to pull off. In March, the yield curve inverted, historically a signal of impending recession, a further sign that the Fed may have to contend with slow growth and inflation simultaneously.
Sorting this out will not be easy, but there will be no chance of success without a credible commitment to reasonable price stability, carefully managed consumer expectations, and — this is something that is down to Congress and the administration — the restoration of fiscal discipline in Washington.
Read the whole thing here.