The Fed Is Already Political

Source: Ludwig von Mises Institute
by Connor O’Keeffe

“Discourse about the Federal Reserve is frequently full of myths, dishonest framing, and outright lies. Listen to a press conference by Chairman Jerome Powell or read an article from a major outlet’s lead Fed correspondent and you’re bound to hear at least a few. … It’s said that the Fed is working to guide the economy along without tipping it over into either high inflation on one side or a recession on the other. The last couple years, we’re told, saw the economy wobble too far toward the inflation side, with the Fed now attempting to pull the economy back to the thin line of stability without tipping over too far and plunging into a recession. But anybody who actually understands what causes recessions can tell that this framing is, at best, incredibly misleading.” (05/08/24)