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Which is so strange and violates two of their three mandates - maximum employment and moderate interest rates.
by glial 4y ago
Which is so strange and violates two of their three mandates - maximum employment and moderate interest rates.
- dasil003 4y agoYou don't want to fuck around with inflation because at a certain point it becomes a self-fulfilling prophecy (ie. merchants raise prices pre-emptively just because they internalize inflation at a high steady state).
- CPLX 4y agoSo strange. It’s almost as if they’ve picked a side in the conflict between supporting labor or capital.
- mpalczewski 4y agothe mandate is maximum employment and 0% inflation.
- metapsj 4y agomaximum employment is a pandemic period objective. they aren't intending to crush the labor market. the fed has largely behind the curve in addressing inflation.
- everybodyknows 4y agoThe Fed has two mandates, not three: https://www.stlouisfed.org/in-plain-english/the-fed-and-the-dual-mandate https://www.stlouisfed.org/in-plain-english/the-fed-and-the-... "... maximum employment and price stability"