-
Inflation: What Fed Needs to Do
Federal Reserve Chairman Jerome Powell made at least three policy errors in forecasting inflation that led him and the Federal Open Market Committee to implement measures that have contributed to the perpetuation of significant price rises. Several times during 2020 - 2021, he repeated his assertion that inflation resulting from supply bottlenecks would be “transitory”, leading the Fed to more than double its balance sheet between the start of 2020 and 2022, and lowering interest rates to near zero. Even today, after an attempt at asset reduction — termed Quantitative Tightening — the balance sheet is about ... (full story)