In a 1977 amendment to the Federal Reserve Act the Fed received the so-called “dual mandate” of maximizing employment and maintaining stable prices. Its mandate is not to maintain stable inflation which is how it has construed its mandate. It is to maintain stable prices.
Being able to redefine your goals yourself to what is relatively easy to do rather than something that’s quite hard to do is a pretty cushy gig.
Whatever its goals the Fed failed miserably in achieving them from 2020 to 2024. I don’t see how anyone can defend the Fed in good faith with that recent track record.
The police didnt stop all of our crime or catch all of the crooks. Fire the police. People still die. Fire all of the doctors. Fire every CEO of a company not making record profits.
Steve
Dave Schuler: Whatever its goals the Fed failed miserably in achieving them from 2020 to 2024.
You can hardly blame the Federal Reserve for the economic shocks due to the pandemic.
Embarrassing, steve. And Zach, nice straw man.
Green new pork deals etc don’t have to be monetized by the Fed. There is always a reason to monetize the Treasury’s (Congress’) drunken sailor spending.
They didn’t give a damn about the fixed income folks. Tar and feather Powell.
Better embarrassing than stupid. AFAICT every first world country had inflation but we recovered faster and have had the soft landing few thought possible. No one had managed an economy through a pandemic and its recovery. Grading on a curve, we did better than anyone else. Could it have been better? Maybe they could have upped rates a few months earlier but we always know that later. They prioritized employees employment when they should have changed to prices sooner.
So now they again need to choose between prices and employment when they have numbers pointing in both directions. People like you will criticize them if they choose wrong neglecting the good outcomes
Unless of course Trump praises them. Then you will support whatever they do.
Steve
Drew: Green new pork deals …
So now you’re blaming the Federal Reserve for congressional spending? Steve addressed the other points.
No, Zach, I’m blaming the Fed for financing it. This isn’t that hard.
Relativism is BS, steve. The only statistic that matters was a 20% increase in the price level – here. And caused by a Fed monetizing Congressional spending. But suit yourself. Stick to your Dem talking points. It probably cost you an election. And that’s a good thing.
Drew: I’m blaming the Fed for financing it.
Huh? The Congress mandated the spending, not the Federal Reserve.
Drew: This isn’t that hard.
Good. Then it shouldn’t that hard to explain. The debt was mandated by Congress, not the Federal Reserve. What should the Federal Reserve have done?
The Fed has a dual mandate but the only number that mattered was the prices. Have to remember that as I am now sure you will go on to support Trump’s wanting rates cut and supporting his tariffs.
Steve