Why is the Fed putting the onus of fighting inflation on workers and consumers rather than on the corporations largely responsible for driving up prices — and padding profit margins?
This is wrong. It's bad economics. It’s insane politics. And it’s profoundly unfair.
The dual mandate is wage suppression and asset inflation.
They are excellent at that
Constant money creation supports asset values.
Anytime there is a hint of wage inflation they raise interest rates.
Not inflating assets
And allowing wage growth
My monetary policy professor, an ex fed, explained it this way. You have money supply and interest rates. You peg/control one and let the other float. If you don't, and play both sides it goes to shit.
They jacked money supply and suppressed rates to negative/zero.
The inflation had to happen and it was entirely into assets (real estate, equities.) As soon as any wage pressure they crush it.
I was in this econ class in 1989.
This was effective and horrible policy and tied to tax policy as well.
Robert Reich
TerryHasAnOpinion
RainbowBody