One of the Fed's key charges is to maintain price stability by maintaining inflation at around 2% YOY.
It should be clear by now that the Fed is unable to achieve its goals and is a failure according to their own stated goals.
It should be clear by now that the Fed is unable to achieve its goals and is a failure according to their own stated goals.
It’s called a “dual mandate” for a reason. They try to maintain 2% while also lowering unemployment as much as possible. Unemployment is fine while inflation is hot, thus the 75 bps raises you’re seeing every month.
But, understand that economic conditions can arise where they have to balance both hot inflation and high unemployment, neither of their ideals but involve figuring out the best trade-off.