The Fed Just Made a Move That Could Backfire Completely

The gist

1. Official unemployment figures exclude millions who left the job market, making the economy look stronger than it actually is for working people.
2. Consumer surveys show Americans fear unemployment at recession-level rates, contradicting the Fed's claim that the labor market is resilient.
3. Snider argues inflation is driven by energy supply shocks, not excess spending, so rate hikes cannot fix the problem and may cause unnecessary harm.
4. If consumers run out of money and prices fall, it could look like the rate hikes worked when the economy is actually sliding into recession.