14 August 2023
The Federal Reserve’s harsh monetary stance seems more detrimental than beneficial. While certain statistics like the Consumer Price Index might indicate reduced inflation, the true picture suggests potential economic disruptions. With interest rates soaring way above the natural rate, the Fed’s excessive constriction is evident. The central bank’s recent inflation data might be within target, but past high rates taint this achievement. Alarmingly, the predominant influence of the shelter component in the CPI highlights pressing concerns, likely sidelining broader economic health. The Fed’s current trajectory threatens its already dwindling credibility. Facing these tactics, the economy’s future stability is genuinely uncertain.