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Inflation is highly variable, and the body that can turn the most knobs (the Fed) doesn't have a good track record of predicting what the effect of that knob tu
by BobbyJo 6y ago
Inflation is highly variable, and the body that can turn the most knobs (the Fed) doesn't have a good track record of predicting what the effect of that knob turning will do lately.
Also, when the government borrows money and the fed buys notes to keep borrowing rates low, that still produces inflation. The fed is sitting on about 4T$ in bonds as of now.
- JamesBarney 6y ago> Also, when the government borrows money and the fed buys notes to keep borrowing rates low, that still produces inflation. Assuming interest rates aren't 0 or near 0 that's true. But recently inflation has been consistently lower than historical norms.
- BobbyJo 6y agoWhich the fed itself has attributed to fluke changes in the market they couldn't foresee.