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by JumpCrisscross 1546 days ago
> Fed has been consistently wrong over last decade in many of their policy, and their credibility is on the line

This is hyperbole. The Fed, by and large, held the American economy together through the financial crisis and more remarkably the pandemic. Until now, neither of those produced meaningful levels of inflation. To say "their credibility is on the line" is to disagree with a multi-trillion dollar bond market taking the Fed's every word very much seriously.

> the same Dallas Fed chairman

This is the Dallas Fed's leadership [1]. None of them authored this article, certainly not the (interim) president, Meredith Black. If you want the dry stuff, what the Fed is actually saying versus its individual researchers, consult the beige book [2][3].

[1] https://www.dallasfed.org/fed/leadership.aspx

[2] https://www.federalreserve.gov/monetarypolicy/beige-book-def...

[3] https://www.federalreserve.gov/monetarypolicy/files/BeigeBoo... March 2

4 comments

"held the American economy together". That's like saying I've kept my personal finances together by maxxing out my credit card. The American economy is insanely deep in debt, spurred on by Fed policy, and as far as what happened during the pandemic, the bill hasn't come in yet, but the inflation that started last year is certainly a preview of not-so-good things to come.
Exactly
I agree. Prominent investors, scores of former and current federal reserve analysts and directors, traders, and many others have been begging congress for financial regulation--before and after meltdowns. Many of those mentioned above have offered direct, specific advice on what to regulate and how to do it. Crickets...for decades.
The gears kept turning, doesn't mean irreparable damage wasn't done.

Central planners in the USSR were probably lauded by some subset of the citizenship, too. Doesn't mean it wasn't a sham.

I wouldn’t call it a sham. I think I’d rather some centralized orchestration of modern finance than none.

Im not claiming that centralized Fed is perfectly wise, nor we should be subservient too it. But I also don’t want to live in a non-government state with no financial system.. an example that comes to mind is Somalia.

>I wouldn’t call it a sham. I think I’d rather some centralized orchestration of modern finance than none. >Im not claiming that centralized Fed is perfectly wise, nor we should be subservient too it. But I also don’t want to live in a non-government state with no financial system.. an example that comes to mind is Somalia.

When that choice is before the American people, we'll be sure to turn to your perspective, but it's entirely irrelevant to the topic at hand, which is that the fed caused a problem they have yet to fix and they're not even now taking the steps necessary to fix it. We have a word now that exemplifies the ridiculous policymaking perspective that led the last year of bad decisionmaking: transitory inflation. That concept was laughable.

Yeah the only people I've seen that say the Fed is useless have been anarchists and libertarians and gold bugs.