Can The Fed Save Us?

Source: American Institute for Economic Research
by Ryan M Yonk & Fernando M D’Andrea

“The Fed is, of course, the agency most closely associated with dealing with the causes and effects of inflation. This association is highly influenced by the Fed itself. Whenever there is an economic disruption, the clarion call is that the Fed must do something. Elected officials and the public expect the Fed to provide nonpartisan economic analysis to help manage the economy and avoid large-scale economic disruptions. Despite this expectation, and the real expertise within the Fed, high levels of inflation are with us, and most experts expect them to continue. Which points to the biggest problem the Fed faces. In contrast to the perception that the Fed is comprised of non-political experts on the mechanics of the economy, the Fed is expected to manage the economy within a political system.” (06/22/22)