There was a time not so long ago that defeating inflation would have been considered a huge victory for the Federal Reserve. No more.
There was a time not so long ago that defeating inflation would have been considered a huge victory for the Federal Reserve. No more: The lack of price and wage pressures in the economy these days is perhaps the central bank's biggest failing.
"It's an acute failure on the Fed's part," said Danielle DiMartino Boothe, a former top aide to ex-Dallas Fed President Richard Fisher and author of"Fed Up: An Insider's Take on Why the Federal Reserve is Bad for America.""They have generated inflation, just not where it's needed." But that's not the measure the broader Fed follows, and it remains a struggle to break out of the inflation abyss.
Current Fed Chairman Jerome Powell also has questioned QE's effectiveness in the past, and told Washington lawmakers last week that he wants the Fed to get better at the inflation issue. One possible solution, then, would be for the Fed to say it wants a higher inflation level. That, however, was dimissed by Powell during the hearing.
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