Notwithstanding the Fed's reign of easy money, after titanium-spined Chair Paul Volcker broke price inflation's back in the early '80s, it remained modest for several decades.
As accommodative monetary policy stoked asset bubbles, the Fed perversely worried price inflation was too low.
In 2012, Bernanke's Fed officially targeted two percent inflation, with prices doubling every 35 years, flouting the law.
In 2020 under Powell, the Fed took another step beyond its mandate, announcing a strategy of inflation averaging, meaning it would allow higher inflation to catch up for inflation below its target.
With price inflation running at 1.6 percent, Powell worried that an "Inflation shortfall," would slow growth.
Brainard pledged the Fed would increase interest rates and start to reduce its bloated balance sheet "At a rapid pace" as soon as May. The Fed's tardy and still tepid tightening promise more pain before inflation is reined in.
S, has no views on addressing inflation, and refused to endorse the Fed's decision to slowly pull back its ultra easy money policy.
It's becoming increasingly difficult to discern fact from fiction, and unfortunately the media has a strong bias. They spin stories to make conservatives look bad and will go to great lengths to avoid reporting on the good that comes from conservative policies. There are a few shining lights in the media landscape-brave conservative outlets that report the truth and offer a different perspective. We must support conservative outlets like this one and ensure that our voices are heard.
Thursday, April 21, 2022
The Fed is belatedly feeling the heat for the inflation monster it birthed.
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