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The FED already controls prices. That’s in its mission: keeping prices stable and limiting unemployment. The ECB is even worth: it’s sole mission is keeping inf
by WastingMyTime89 5y ago
The FED already controls prices. That’s in its mission: keeping prices stable and limiting unemployment. The ECB is even worth: it’s sole mission is keeping inflation at 2%. The WSJ coverage is just poor.
- twblalock 5y agoThe Fed does not set prices. It tries to keep inflation down but not by diktat -- instead it uses policy tools like the federal funds rate which causes a ripple effect throughout the banking system.
- WastingMyTime89 5y agoWhere did I write that the Fed set prices? Where did you read that Omarova wanted the Fed to set prices? Omarova wants the Fed to exercise more control on prices. The commenter I was replying to implied this was crazy despite the Fed already controlling prices. The fact that it does so through a set of different financial tools (the federal funds rate is only one of them) is not really relevant to this point.