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.
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