AN ECONOMIC WARNING WORTH PAYING ATTENTION TO: “The Federal Reserve has spent 25 years winning back the inflation fighting credibility that it lost during the 1960s and 1970s. Inflation has been fought so successfully that inflationary expectations are no longer even a glimmer in peoples’ financial calculations. But a few more months of this, and that will start to change. The Federal Reserve will have to clamp down, hard, to prevent high inflationary expectations from being written into contracts and labor agreements. Better a moderate recession now than a really severe one when the Fed has to wring the inflation out of the economy.”