Monetary Policy
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Is the Fed Finally Serious About Inflation?
“Chair Powell has repeatedly claimed that the Fed will use its tools to create price stability. Will he and other Fed officials finally bring inflation back toward their stated two percent target?” ~ Thomas L. Hogan
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Fed Must Act Now to Stop Runaway Inflation
“Fed Chair Jerome Powell promised more than six months ago that the Fed would ‘use our tools to make sure that higher inflation does not become entrenched.’ Its actions, however, indicate otherwise.” ~ Thomas L. Hogan
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Monetarism Remains a Useful Guide on Inflation
“If the Federal Reserve raises interest rates too quickly, sharply declining M2 growth will signal the risk of recession. Monitoring M2 growth can help in making sure the Fed tightens monetary policy at the appropriate pace, not too fast and not too slow.” ~ Peter N. Ireland
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Inflation, Unemployment, and Fed Credibility
“Any time it looks like there’s a tradeoff between unemployment and inflation, something has gone very wrong. We could’ve avoided both horns of the dilemma if the Fed had done its job.” ~ Alexander William Salter
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Hollywood’s Monetary Policy
“What is fact versus fiction in this story? While we should surely be wary of Fed-induced risk taking and credit misallocation, I’m skeptical that this was a major problem in the QE period.” ~ Thomas L. Hogan
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Inflation Increased In May, New Data Show
“It is difficult to say precisely when the inflation tide will turn. But consumers should expect inflation to remain high throughout the rest of the year.” ~ William J. Luther
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Inflation and Time
“The monetary regime that we have had since Richard Nixon closed the gold window is one of persistent price inflation. A comparison of money prices today and money prices in 1971 are essentially meaningless.” ~ Joshua R. Hendrickson
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Will Federal Reserve Losses Impact Fed Shareholders or Affect Monetary Policy?
“Since it started raising interest rates, the Fed has already experienced mark-to-market losses of epic proportions, and will soon face large operating losses, something it has never seen in its 108-year history.” ~ Paul H. Kupiec & Alex J. Pollock
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FOMC Projects Even Higher Inflation
“The Fed is not even committed to bringing inflation back down to 2 percent very quickly. The median FOMC member currently projects inflation will remain above target through 2024. We had better get used to high inflation. We will likely be dealing with it for years.” ~ William J. Luther & Morgan Timmann
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We Still Need Milton Friedman
“Monetary policy should be about money—not specific markets, but their common denominator. The sooner we enlist Friedman to help ‘run the show,’ the faster we can clean up our economic messes.” ~ Alexander William Salter
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Putting “Money” Back in “Monetary Policy:” A Response to Dan McLaughlin
“The way we fix things is by carefully diagnosing demand-side and supply-side problems. When it comes to demand, we’re talking about central bank activity. Unfortunately, none of McLaughlin’s four points are in the ballpark.” ~ Alexander William Salter
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Making Sense of Monetary Policy and the Future of Inflation
“The expansion of circulating currency has diminished to rates comparable to pre-pandemic lows. These factors and the current state of business inventories suggest that inflationary pressures are likely near their limit.” ~ James L. Caton
