The Victims of Inflation

by Wolf Richter
Wolf Street

Inflation gets pitched as something inherently good the Fed is trying to make sure folks gets enough of. But someone’s paying the price.

OK, this is something new in the already tarnished history of mankind: Governors of the Federal Reserve have been fanning out to explain to folks that inflation is “too low,” and that consumers’ and workers’ expectations of future inflation are too low, and that the Fed, for the first time ever, might use monetary policy, such as cutting interest rates, in order to create more inflation.

In the past, the Fed has used monetary policy, such as raising rates, to tamp down on inflation. And in the past, it used interest rate cuts to stimulate the economy.

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