The fed has pretty crude tools it gets to use to hit its dual mandate of maximum employment and 2% inflation (which was changed to 2% asymmetric inflation in 2020 to get caught up on a decade of under inflation & avoid potential depression/deflationary event)
Polticians on the other hand have much more precise tools available. They can raise taxes, change prices, restrict corporate profits, etc.
I personally blame the politicians for their theatrics and their superpac influence more than the fed. But many would disagree.
The fed absolutely made mistakes (funny enough at last fomc press meeting Powell admited to this). I suspect when Powell said inflation was tranistory he was hoping for 5% peak not 10%. But the Polticians also then went out and started a war which accelerated/entrenched inflation.
I also enjoyed Lord's of Finance. Set back in the 1930s 😁
It was definitely an interesting read.
The fed has pretty crude tools it gets to use to hit its dual mandate of maximum employment and 2% inflation (which was changed to 2% asymmetric inflation in 2020 to get caught up on a decade of under inflation & avoid potential depression/deflationary event)
Polticians on the other hand have much more precise tools available. They can raise taxes, change prices, restrict corporate profits, etc.
I personally blame the politicians for their theatrics and their superpac influence more than the fed. But many would disagree.
The fed absolutely made mistakes (funny enough at last fomc press meeting Powell admited to this). I suspect when Powell said inflation was tranistory he was hoping for 5% peak not 10%. But the Polticians also then went out and started a war which accelerated/entrenched inflation.
I also enjoyed Lord's of Finance. Set back in the 1930s 😁