The Fed’s late-2024 rate cuts have undermined credibility about its inflation target. Also wouldn’t a “soft-landing” (btw, a totally inept metaphor if the goal of policy is to keep the economy cruising along) be easier to reach with long term rates where they were before the Fed cut the funds rate target? The Fed’s rhetoric and actions are not consistent
RIGHT!! Good time to be retired... The Fed is totally vexing. Today Powell is testifying again (2/11/25) and again he is in no hurry to cut rates...can be patient! How about hiking them? How about hitting the taget the Fed has missed for 45-months running? Or is it all about communications and talking about the target and aspiring to the target? When I saw Fed economists talking about communications as 'another tool' I knew we were in trouble. Communication is not a tool. It is only if you are trying to turn expectations to a different place than policy is really moving them. This focus on communications is crazy! Enjoy retirement. Thanks for reading/comment. ...was at St Louis Fed last week for the Homer Jones Lecture. Intersting place... B
Picking a fight with a presidential admin's top economic priorities would be deeply unwise in any event. But here, the Fed seems to be planning not only to blame the admin for inflation, but to wrongly blame the admin for inflation! What an impending trainwreck.
The Fed’s late-2024 rate cuts have undermined credibility about its inflation target. Also wouldn’t a “soft-landing” (btw, a totally inept metaphor if the goal of policy is to keep the economy cruising along) be easier to reach with long term rates where they were before the Fed cut the funds rate target? The Fed’s rhetoric and actions are not consistent
RIGHT!! Good time to be retired... The Fed is totally vexing. Today Powell is testifying again (2/11/25) and again he is in no hurry to cut rates...can be patient! How about hiking them? How about hitting the taget the Fed has missed for 45-months running? Or is it all about communications and talking about the target and aspiring to the target? When I saw Fed economists talking about communications as 'another tool' I knew we were in trouble. Communication is not a tool. It is only if you are trying to turn expectations to a different place than policy is really moving them. This focus on communications is crazy! Enjoy retirement. Thanks for reading/comment. ...was at St Louis Fed last week for the Homer Jones Lecture. Intersting place... B
great program but how about something a body can do?
Prioritize inflation control not minimize unemployment harm
Picking a fight with a presidential admin's top economic priorities would be deeply unwise in any event. But here, the Fed seems to be planning not only to blame the admin for inflation, but to wrongly blame the admin for inflation! What an impending trainwreck.