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Fortune
Fortune
Alvaro Vargas Llosa

America is drunk on credit–and polarized politics complicate the Fed’s unenviable challenge of ending easy money

(Credit: Chen Mengtong—China News Service/VCG/Getty Images)

I would not want to be in the seat of Federal Reserve chair Jerome Powell. Whether the Fed continues to hike interest rates or not, Powell will be blamed for a recession that is almost inevitable at this point.

The savings that Americans accumulated during the pandemic and the money the government handed out in various ways (stimulus, loan forbearance, tax credits) are gone, and the country is–yet again–drunk on credit.

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