Tag Archives: inflation

A Plea to the Fed: Inflation, Interest Rates & Fed’s Combined Monetary & Macroprudential Policy

For six months, half a year, the US CPI inflation rate has remained in the 3% range, averaging 3.4% in that time. That is low inflation. The inflation rate almost never exactly equals the 2% Fed target. Rather the inflation rate has bounced around 2%, and a 3% number for 6 months leaves little doubtContinue reading “A Plea to the Fed: Inflation, Interest Rates & Fed’s Combined Monetary & Macroprudential Policy”

The Trojan Horse in the Gates of US Monetary Policy

The Federal Reserve is embarked upon increasing the interest rate that they set on reserves held at the Fed. This is the interest rate that the Fed determines by diktat, coming after interest was allowed to be paid on reserves for the first time in 2008. This is being done to combat inflation. Consider howContinue reading “The Trojan Horse in the Gates of US Monetary Policy”