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No, but they can funnel money to investments towards increasing overall egg capacity. Which might not be "profitable" for a normal bank, but the Fed's performan
by runnerup 4y ago
No, but they can funnel money to investments towards increasing overall egg capacity. Which might not be "profitable" for a normal bank, but the Fed's performance is measured in domestic inflation, not shareholder profits.
It may be the case that we need to pay slightly higher prices year-round to maintain excess capacity for some things to reduce price spikes during major disruptors. This is very common for many food products, where governments around the world, including the US government, subsidize production which doesn't have a customer and the food usually has to get destroyed or find someone willing to pay "waste-stream" prices for the products to turn them into something marginally higher value for consumers.
- dragontamer 4y agohttps://www.nytimes.com/2020/04/11/business/coronavirus-destroying-food.html https://www.nytimes.com/2020/04/11/business/coronavirus-dest... Yeah, that's what we do when we have too much supply Also, that's not the Feds job.
- runnerup 4y ago> Also, that's not the Feds job. Yes, I'm lamenting that the Fed is "responsible" for inflation but only given the tools to attack one side of it.
- dragontamer 4y agoThe Fed is in charge of general inflation. The Agriculture department is responsible for eggs, corn and food. The Department of Energy is responsible for oil, nuclear, and solar. Housing and Urban development is responsible for housing. The Fed is responsible for the stability of the dollar. ------- If there is a specific field that's doing poorly, we focus on that. We're looking at the Fed because we think the general dollar is devaluing too quickly, which is absolutely the Feds job to fix.