According to an Associated Press article today:
" The Fed is trying to calibrate its policies so that it doesn't cut rates too quickly and allow inflation to surge again. At the same time, it doesn't want to reduce them too slowly, which could drag down hiring and growth.
If inflation stayed too high, Fed officials could “pause” their rate cuts, the minutes said, while if the economy slowed and unemployment rose, they could reduce rates more quickly."
In other words, the vaunted Fed must wait until the results of its last interest modification are apparent before making other interest rate changes, whose results won't be immediately known until the damage is done.
Apparently, the Fed's only recourse in times of economic peril is adjusting interest rates up or down in an optimistic attempt to hold inflation as close as possible to a Goldilocks 2% over some period of time. Many experienced and accomplished economists don't feel that interest rates and inflation are connected. They believe that enpixelating more money for the government to spend on Whig projects is more likely to be the cause. It's amazing that the Fed guys can have kept this charade going for so long, well actually just 111 years.
However, if current technological progress means anything at all there could be a significant change in the near future. Eventually, maybe very soon, artificial intelligence will be providing the solutions to big problems and the very best candidate for its use is the Federal Reserve, especially since the output is based on available numbers. The US economy will be a trained seal balancing the ball of prosperity on its nose.
dailymail.co.uk
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