There’s an insane, unmentioned assumption to pieces like this, and within the fed itself: that it’s the fed’s job to fix US inflation.
In fact, they have perhaps the weakest tool against inflation, which is the price of money (and they don’t really even control that; just the base rate because they are the biggest lender).
In reality, it’s the us legislature’s job to do something. And they won’t.
The fed is in a weird position, because they have more power when they are the ultimate arbiter of the economy. They want to be there, they have an interest in convincing all of us that it’s their job to deal with inflation.
But the fact is that we need actual fucking laws, laws on prices and laws on employment and laws on debt and laws on housing. That’s what would actually impact inflation, possibly (likely!) WITHOUT the catastrophic effect of killing peoples retirement savings and entrepreneurial aspirations in the process.
Well I’m of the opinion that the fed can control inflation through policy and that is what got us here in first place. All through the frump years the fed should have been raising the rates but they kept them at rock bottom for too long and then printed trillions on top of it. Saying that won’t affect inflation is absurd. It may not be the feds job but they have the power to affect inflation most directly, that is by printing more money and adjusting rates.
I do agree that the legislature should do something but good luck there.
There’s an insane, unmentioned assumption to pieces like this, and within the fed itself: that it’s the fed’s job to fix US inflation.
In fact, they have perhaps the weakest tool against inflation, which is the price of money (and they don’t really even control that; just the base rate because they are the biggest lender).
In reality, it’s the us legislature’s job to do something. And they won’t.
The fed is in a weird position, because they have more power when they are the ultimate arbiter of the economy. They want to be there, they have an interest in convincing all of us that it’s their job to deal with inflation.
But the fact is that we need actual fucking laws, laws on prices and laws on employment and laws on debt and laws on housing. That’s what would actually impact inflation, possibly (likely!) WITHOUT the catastrophic effect of killing peoples retirement savings and entrepreneurial aspirations in the process.
Well I’m of the opinion that the fed can control inflation through policy and that is what got us here in first place. All through the frump years the fed should have been raising the rates but they kept them at rock bottom for too long and then printed trillions on top of it. Saying that won’t affect inflation is absurd. It may not be the feds job but they have the power to affect inflation most directly, that is by printing more money and adjusting rates.
I do agree that the legislature should do something but good luck there.