Since price inflation is de facto currency devaluation, the Fed's second mandate of "full employment" (established in the '40s?) which puts downward political pressure on the fed funds rate, is contradictory to its primary mandate of maintaining the value of the fiat reserve currency.
Isn't this right, Peter?
And isn't this the root problem the Fed has in slaying price inflation?
Thanks, Peter, for explaining so well the errors the Fed has made, resulting in painting itself into a corner. I don’t think the average American understands the Fed’s maneuverings at all.
So, heading toward the Election, Biden will crow about job numbers, increased manufacturing, strong stock market, and a few other metrics. But gas prices will likely be higher, and interest rates, and grocery prices, and most of the things Americans have to buy - painfully. I can’t think of a way for Biden’s handlers to spin this to their favor. Can You?
This is the new economic reality. They know that. This is an election year game of pretending things will go back to the way they were pre-Covid stimulus because that's what voters want to hear. The good ole days! This is the new monetary policy, much more intervention than even before to prevent a recession and keep money moving. Maybe some of them in our government don't understand, I don't know. I don't have the excellent graphs and data that you do, but this game of 'just keep saying it' seems evident to me.
Since price inflation is de facto currency devaluation, the Fed's second mandate of "full employment" (established in the '40s?) which puts downward political pressure on the fed funds rate, is contradictory to its primary mandate of maintaining the value of the fiat reserve currency.
Isn't this right, Peter?
And isn't this the root problem the Fed has in slaying price inflation?
Thanks, Peter, for explaining so well the errors the Fed has made, resulting in painting itself into a corner. I don’t think the average American understands the Fed’s maneuverings at all.
So, heading toward the Election, Biden will crow about job numbers, increased manufacturing, strong stock market, and a few other metrics. But gas prices will likely be higher, and interest rates, and grocery prices, and most of the things Americans have to buy - painfully. I can’t think of a way for Biden’s handlers to spin this to their favor. Can You?
This is the new economic reality. They know that. This is an election year game of pretending things will go back to the way they were pre-Covid stimulus because that's what voters want to hear. The good ole days! This is the new monetary policy, much more intervention than even before to prevent a recession and keep money moving. Maybe some of them in our government don't understand, I don't know. I don't have the excellent graphs and data that you do, but this game of 'just keep saying it' seems evident to me.