Jerome Powell and the Federal Reserve Bank are doing the right thing by pursuing a tighter monetary policy to fight inflation. They are just a year and a half too late doing it, which allowed inflation to get out of control.
As I’ve noted in many previous blog posts, including this one, the signs of impending inflation were clear long ago. Still, government officials and Fed members from President Biden to Jerome Powell claimed that inflation was transitory and would soon come back down. Move along: nothing to see here.
The events of the past year and a half present a good lesson in monetary politics.
