Ball point pen on the morning newsprint

The Fed basically has one tool in the shed. If inflation is detected, they could increase interest rates and slow the economy. If a slowing economy is detected, they could lower interest rates and spur the economy. Since business is reluctant to raise prices during a slowing economy, inflation and a recession  are almost always mutually exclusive. But our government has thrown another variable into the mix; a huge debt and a falling dollar. Even if world prices stay the same, the shrinking buying power of the US dollar will make it seem like inflation. Now we have a slowing economy and inflation, so what can the fed do?.... nothing.

Yesterday the Federal Reserve left interest rates unchanged.

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