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by notJim 1196 days ago
> maximum employment and stable prices

It's a dual mandate. If I'm not mistaken, we recently reached pre-pandemic employment levels. There is no way we would have reached this point without low interest rates through the pandemic.

Other countries have the same inflation rate that we do, but with lower employment rates. Ours is a better position to be in.
1 comments
acomar 1196 days ago
the economists at the fed think the only possible cause for inflation is demand pressure, forgetting the historical supply crunches that have led to inflation. wages are up and unemployment is down because production is still reeling from covid, especially as the largest generation in history retires. so amusingly, in their failed ploy to crush labor power, the feds have fucked the banks.

(this is not to excuse the greed of the bankers - this crisis is the purest essence of capitalism, it's inherent contradictions on full and gory display.)

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throw0101c 1196 days ago
> the economists at the fed think the only possible cause for inflation is demand pressure, forgetting the historical supply crunches that have led to inflation.

No, the economists at the Fed do not think that. Or rather, they try to find out what is driving inflation in any given situation, like they did with this 2022 study:

> Inflation has remained at levels well above the Federal Reserve’s inflation goal of 2% for over a year. Separating the underlying data from the personal consumption expenditures price index into supply- versus demand-driven categories reveals that supply factors explain about half of the run-up in current inflation levels. Demand factors are responsible for about one-third, with the remainder resulting from ambiguous factors. While supply disruptions are widely expected to ease this year, this outcome is highly uncertain.

* https://www.frbsf.org/economic-research/publications/economi...

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actionablefiber 1196 days ago
It is more like, demand is the only thing the Fed can control.

The Fed can’t end the invasion of Ukraine or cure avian flu or speed up cargo ships. They can raise rates and that’s about it.

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