Fed will cause unnecessary harm to the US and world economy this year

from Mark Weisbrot

Here are eight predictions for the coming year, in accordance with a hallowed tradition that I have previously not honored. If some of the supporting facts below seem unfamiliar, it could be because they have not received the attention they deserve. But they are real, and links to sources are provided. First, some good news about the US economy:

1. Inflation will likely continue to fall until it becomes obvious that it is no longer a serious concern.Inflation (as measured by the Consumer Price Index) has alreadyfallenprecipitously over the past five months: annualized inflation has been2.5 percent(July through November), as compared with 11.8 percent for the preceding five months (February through June). If this looks surprising, it’s because the number most reported in the media is for November 2021-November 2022, which is7.1 percent. This is true, but not as informative about…