Clarida: If inflation expectations 'drift up persistently,' Fed would need to respond

Posted by Micah Miller on

Jerome Powell has been vocal about the Fed's goal to reach 2% inflation in the CPI. Though, we know this figure is not true inflation, it is important to recognize that the fed WANTS inflation. That is, until they don't.

It goes to show that economic volatility is actually caused by Federal Reserve intervention, instead of preventing it as they claim to be doing.

When things slow down, they press on the gas peddle. When things are too hot, they slam on the breaks.

Chair Richard Clarida says that if inflation runs too hot, the Fed will need to "adjust policy."

Read the full article form Reuters here.


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