[slv77]

There is a difference between monetary policy and fiscal policy. Monetary policy is set by the Federal Reserve while fiscal policy is set by Congress (as laid out in the constitution) The activist Fed under “the courage to act” Bernanke and more recently under Powell moved from the realm of monetary policy to fiscal policy.

By massively expanding the Feds balance sheet with mortgage bonds the Federal Reserve massively increased the value of housing and lowered mortgage payments for existing homeowners. Prior to 2008 the Fed only bought US government securities so any market distortions it caused the benefit accrued to the Government.

As the Fed is now having to pay interest on reserves and higher inflation it is making the cost of those decisions more apparent.

Now, if Congress had said in 2008 that they wanted to write checks for a a couple of trillion dollars per year to homeowners and pay for it with a 10% tax (inflation) that would mostly benefit the old and wealthy and hit the young and poor the hardest they would be within their constitutional power to do so. It is unlikely that Congress would ever do so but the Federal Reserve made that decision. That makes me uncomfortable.