The Peterson Institute's study predicts that undermining the Federal Reserve's independence could lead to severe economic consequences, including a GDP loss of $304 billion and increasing inflation.
Warwick McKibbin noted that while initial economic growth could occur, it would be followed by rising inflation and capital leaving the US, ultimately harming domestic producers and workers.
McKibbin illustrated the situation by saying, "It's like the party at the front and the hangover after four years," emphasizing the longer-term negative impact after initial gains.
By 2028, the study identified a potential additional 2% inflation per year, with the economy projected to shrink as domestic goods become more expensive and purchasing power decreases.
Collection
[
|
...
]