The U.S. Federal Reserve is trying to accomplish a so-called soft-landing of the economy back down to a low inflation, modest growth, low unemployment scenario. An increasing number of voices are signaling their skepticism that this can be accomplished. Fed Chairman Jerome Powell even concedes that some of the factors at play “we don’t control.” When the similar problem of a slowing GDP and rising CPI occurred in the 1970’s, economist Milton Friedman said the first objective was to control inflation, and Chairman Powell has adopted the same strategy.  Like now, the 1970’s involved an oil price shock, but one of larger magnitude in real terms than the current runup in fuel costs. Unlike then, the U.S. has...

TAGS – Biofuels, North America