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I don't think Powell's words mean he is trying to pop a bubble, just to slow down price increases for a while to bring prices in line with historical norms.
by lukas099 4y ago
I don't think Powell's words mean he is trying to pop a bubble, just to slow down price increases for a while to bring prices in line with historical norms.
- datavirtue 4y ago"to bring prices in line with historical norms." How can you determine if that is the correct/desired course of action?
- Rury 4y agoThey publicly state their desired course of action each year. They've historically held an economic policy of maintaining perpetual ~2% inflation over long periods of time. Inflation is higher than that now, so they're trying to bring it back down. For more details see: https://www.federalreserve.gov/monetarypolicy/monetary-policy-what-are-its-goals-how-does-it-work.htm https://www.federalreserve.gov/monetarypolicy/monetary-polic... https://www.federalreserve.gov/newsevents/pressreleases/monetary20220615a.htm https://www.federalreserve.gov/newsevents/pressreleases/mone...