To The Moon

Dear Chairman Powell,

I am writing to you on the occasion of the one-year anniversary of the Federal Reserve's rate hike to combat inflation. As you know, this was a bold move that aimed to prevent runaway inflation, and I commend you and your team for taking this necessary step.

As we move forward, I urge the Federal Reserve to adopt a more slow and steady approach to monetary policy. Specifically, I recommend that the Fed implement a 25 basis point increase in March and continue to gradually increase rates through 2024 for a soft landing.

There are several successful examples of rate increases resulting in a soft landing and avoiding economic recession. For instance, in the mid-1990s and early 2000s, the Federal Reserve gradually increased interest rates in response to concerns about inflation. This slow and steady approach helped to cool down the economy without causing a recession. Instead, the US economy experienced sustained growth throughout these periods.

More recently, the Federal Reserve began a gradual rate hike cycle in 2015, raising rates slowly and consistently until 2018. This approach helped to keep inflation in check without causing a recession. The US economy continued to grow throughout this period, and the unemployment rate remained low.

These examples demonstrate that a gradual and consistent approach to raising interest rates can help to keep the economy on track without causing a recession. By avoiding sudden and aggressive rate hikes, the Federal Reserve can give businesses and individuals time to adjust to higher borrowing costs, reducing the risk of defaults and financial instability.

While it is important to stay vigilant against inflation, we must also consider the broader economic impact of our policy decisions. Sudden and aggressive rate hikes can destabilize financial markets and slow down economic growth, which is why I believe a more measured approach is necessary.

Moreover, a gradual increase in rates will give businesses and individuals time to adjust to higher borrowing costs, reducing the risk of defaults and financial instability.

I understand that finding the right balance between inflation and economic growth is a complex task, but I believe that a gradual and deliberate approach is the best way forward. I encourage the Fed to carefully consider the long-term implications of its policy decisions and to act in the best interest of the broader economy.

Thank you for your attention to this matter.