what about fears of recession? it s a very difficult balance here because if they do too much they risk short circuiting this economic recovery, starting a recession, but if they don t do enough, then inflation can move out of control. larry summers who s been sounding the inflation alarm for much of the past year, he s not very optimistic. the foreign u.s. secretary put out this line. he said, the fed s current policy trajectory is likely to lead to stagflation and ultimately a major inflection. stagflation is a toxic mix of slow growth and high inflation something we saw in the late 70s, early 80s. it s hard to get out of. no one wants to see that. if consumer prices start to ease, then the fed could feel vindicated here with their patient approach. if not, i do think the recession
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