Re:UK pay falls at fastest rate on record as inflation hits
by dragonwriter on Tuesday July 19, 2022 @05:52PM
(#32158456)
> I do fear the fed isn’t doing what it needs to because they’re afraid of being seen as political, one way or the other.
The Fed tends to be restrained because the monetary policy levers they have been given are deliberately a blunt instrument with extreme overshoot dangers, especially when all the indicators aren't pointing the same way, and managing the economy requires the much more targetable tool of fiscal policy controlled by Congress as well as monetary policy.
(That said, the Fed is pushing, by historical standards, really hard on its levers, raising rates at a pace not seen since 1980.)
The Fed tends to be restrained because the monetary policy levers they have been given are deliberately a blunt instrument with extreme overshoot dangers, especially when all the indicators aren't pointing the same way, and managing the economy requires the much more targetable tool of fiscal policy controlled by Congress as well as monetary policy.
(That said, the Fed is pushing, by historical standards, really hard on its levers, raising rates at a pace not seen since 1980.)