Volcker 2.0 vs Bernanke 2.0?

Check out the accompanying pdf and chart collection. Executive Summary: Our current Fed chief has recently turned to Paul Volcker’s playbook to fight inflation. The risk is that he will trigger the kind of financial instability that occurred during Ben Bernanke’s term as Fed chair. Powell and his colleagues seem hellbent on further rate hikes with no pause to assess the impacts of recent ones. One Fed governor recognizes the risks of doing so but agrees with the Fed’s risky course. Another one is quite dismissive of financial stability concerns. But we see red flags in the weakness of the housing market, the negative wealth effect, and the strength of the dollar. … Also: The labor market remains robust, but wage inflation may be peaking. … And: Dr. Ed reviews “Operation Mincemeat” (+ +).