> A big part of that is trying to avoid the 'bust' part of a boom-bust cycle.
The thing is you can't avoid the bust part, you can only soften it in a way it is not harmful for (some) people.
The thing is you can't avoid the bust part, you can only soften it in a way it is not harmful for (some) people.
When they pumped the price to astonishing heights till 2015, what they did in 2018 was too late.
Yes, inequality is a massive economic problem. Yes, we need to find a way to fix it. Spouting poorly formed conspiracy theories about financial markets is not the way to do it. We weren't holding rates low to inflate equity markets. The fed doesn't care about equity markets more than any other economic gauge. We were holding rates low because we were trying to minimize unemployment and there were no signs of inflation.
When we started getting nervous about inflation, we started increasing rates, and selling off the balance sheet. That didn't go terribly well which is we stopped.
The fed is a completely apolitical institution that works very hard to monitor and assist the economy. They are academics, not billionaires. Their sole purpose is to make sure that you have a job and don't have to worry about the price of milk increasing 200% in a week.
Both of those things have been called into question this week, neither is because the fed didn't increase interest rates quickly enough.
I'm not going to assume anything about your political leanings, but I do want to address this. I have heard a lot of Bernie supporters spouting the theory that you just told me. The irony of that is that he wants to put labor reps on the fed. You know what labor reps would push for? Super low interest rates to weaken the dollar and increase manufacturing activity. Their position is completely contradictory.