Will The Fed's Cuts In 2024 Reignite Inflation: Is Powell Repeating Arthur Burns' Mistakes

A few days ago we had some fun at the expense of the Fed's technocrats, when we concluded that "inflation had been defeated"...

Inflation has been defeated pic.twitter.com/uSgjX7q2un

— zerohedge (@zerohedge) December 18, 2023

... by looking at the roundtrip in CPI inflation from 1972 to 1976. Of course, inflation was anything but defeated as everyone knows what happened in the late 1970s and early 1980s, and how Paul Volcker just barely managed to put the inflation genie back in the bottle, and certainly not before hiking rates to 20%.