While some believe the U.S. government can spend and borrow with abandon because it can print money, one of the most established laws of economics is that there is no such thing as a free lunch.
The government and Fed are over a barrel. The federal debt is now over $30 trillion. But the Fed’s only way to address runaway inflation? Raising interest rates.
The recent gyrations in the stock market and the uncertainties surrounding American trade policies with China and other parts of the world have raised the question of when the next recession will come.