In the past year, the FRB increased interest rates several times with a promise to raise them again in December 2022 and beyond - all with the intent of preventing an expansion of hyperinflation and keeping the economy stable. But, the invasion of Ukraine and its ramifications, variant covid varieties, lack of world leadership ( the UK for example) all lent to our economy going haywire. In 2019, the economy was cruising along for an unprecedented 10th year of steady growth, terrific employment levels with controlled inflation. We still are doing well when we look at employment levels at all-time highs, wages starting to increase and so on. But the FRB HAD to raise the interest rate to curtail demand. The recent hikes of .5% and then .75% sound minuscule but in the world of quadrillions of dollars, those percentages are huge. We can see the impact ourselves when we grocery shop, etc.

But there is now talk of a recession - two quarters - or six months - of zero or even negative growth. Our October GDP numbers look promising and the quarterly trend seems positive. Recessions are inevitable but can be used as a time for the economy to re-baseline itself. Think of it as a kind of economic "re-cleansing". When the economy grows quickly, economic activity can grow faster than our systems' ability to replenish the means to satisfy the increased demand. Unfortunately, other pillars are affected. Unemployment for example usually goes up during a recession as demand for products slows. No income means less spending. Less spending means fewer jobs. Fewer jobs mean less output. And so on. We want to stop the "and so ons" early. We want recessions short and minimize their impact via a "soft landing".

Now, what should the Fed do? What approach do you think the FRB should take going forward? What should the legislative branch of our government do?

For example, should the Fed continue to raise rates and if so, at the same percentages? Higher? Lower? Should we cut government spending and if so where? Environmental? Defense?

How does the system create "balance" again? What do you recommend and why? Remember to justify your recommendation using economic knowledge.