The Fed is caught between the devil and the deep blue sea.
.
Why? Because with the US economy finally at full employment the choice is now clearly between runaway inflation (goldbugs would even say hyperinflation) and another prolonged and nasty recession.
As to the reasons why the US economy is now against the wall of full employment when a few months ago it was going to the dogs they are:
First, the existence in the US of too many dole bludgers spending their time either surfing the waves, if they are young or doing day trades, if they are a bit order.
Second, Americans not being able to resist the temptation posed by record low interest rates and thus continuing to spend money that they don't have due to record.
And since America cannot afford another recession, guess what will finally be arriving if nothing can be done to bring the surfists and day traders into the job market?
