3 ms·

People will point to duration mismatch but Fed raised too fast without proper warnings.

• dragontamer 4y ago
  Inflation is still 6% YoY. Fed hasn't raised fast enough and is looking at +.50% next meeting.
  • prottog 4y ago
    There's ample reason to believe that the Fed delayed starting its current rate hike process due to political reasons; Chair Powell wanted to be re-appointed and felt that no chair who championed rate hikes back in 2021, which is when it should have started, stood a chance.
    • dragontamer 4y ago
      Unlikely. Powell was kept on by both Trump and Biden. For all of the hoopla about "politicalization of the Fed", Powell has kept his chair. Its not perfectly insulated. Both Trump and Biden can whisper to Powell and encourage certain behaviors. Ex: Trump pushed for lower rates, and Biden pushed for higher rates respectively.
  • lvl102 4y ago
    Inflation is alway a monetary phenomenon. They caused this episode of inflation. All of those people at Fed should resign.
    • vkou 4y ago
      They also caused the entire economy not collapsing into a burning pile of garbage in 2020. They are the reason you're not living in a bunker, trading bottle caps for ammunition and fighting for supplies with gangs riding questionably modded dune buggies through the desert. The Fed has two mandates. Maintain low unemployment and low inflation. There is no way they could have achieved both in the last three years, but inflation is way preferable to economic collapse.