The New York Times is here to tell you that inflation is still a problem, and more suffering for the working class is the solution. As the progressive economist James Galbraith (Medium, 6/17/23) wrote recently, the US has dealt with inflation differently in the past. That is the main channel through which Fed policy (i.e., interest rate hikes) works. Interest rate hikes are the implied method for getting inflation back down to 2%, which is the Fed’s target level. This narrative may appeal to the paper’s upper-class readership, who are generally insulated from the worst effects of rate hikes.

Source: New York Times June 27, 2023 23:53 UTC