Re:Fed raises rates by another 75 bps to fight inflation
by User23 on Wednesday September 21, 2022 @04:56PM
(#32931404)
Not really. A consequence of doing so would be breaking the inter-bank payment system, which is to say crashing the economy with no survivors. The Fed simply must provide adequate reserves to support the payment system. The so-called "dual mandate" of controlling employment and inflation rates is necessarily secondary to that. I mean theoretically sure they could do whatever, but the end result would be the dissolution or restructuring of the Fed by Congress, or worse.
The FED can make they matter again with a pen strike. It doesn't matter because they don't want it to matter.