Owatonna, Minnesota Correspondent — The question has largely been answered since it was drafted, which is worth saying plainly. The Chairman retired the word transitory at the end of November. The November print came in at six point eight percent, the highest in forty years. The Fed accelerated the taper in December and signaled three … Continue reading Is the current level of federal spending on pandemic relief and infrastructure likely to produce sustained inflation, or will it prove temporary?
finance
Should the Federal Reserve begin reducing its balance sheet more aggressively even if it risks tighter financial conditions later in the year?
Owatonna, MN Correspondent — The balance sheet is still far larger than it was before the crisis, and gradual reduction is appropriate for exactly that reason. It got that way over years and it should come down over years. Moving aggressively risks a sharp tightening the real economy may not be ready to absorb. The … Continue reading Should the Federal Reserve begin reducing its balance sheet more aggressively even if it risks tighter financial conditions later in the year?
