The phrase “don’t fight the Fed” was adopted to indicate that the markets should follow the policy measures taken by the Fed and not resist it. Under Jerome Powell at the Fed and Andrew Bailey at the Bank of England, this phrase no longer applies. Instead, both the Fed and the Bank are now taking their policy cues from the market, not the other way round.
Is this a case of society preferring high inflation to recessions?
Thanks for sharing your view.
Maybe an idea for a next post;
I'd imagine recessions are worse for the jobs of Democratic politicians than high inflation. (I'd need to dig but lots of dictators seem to manage with high inflation).
I know central banks are independent on paper but in reality they seem to listen to the politicians or to the market.
fwiw, I still think Trichet at the ECB is still by far the worst central banker of the modern era. Clueless doesn't even come close to describing his (disastrous) time at the ECB!
Everyone involved with the ERM is thankful for not being mentioned here.
Is this a case of society preferring high inflation to recessions?
Thanks for sharing your view.
Maybe an idea for a next post;
I'd imagine recessions are worse for the jobs of Democratic politicians than high inflation. (I'd need to dig but lots of dictators seem to manage with high inflation).
I know central banks are independent on paper but in reality they seem to listen to the politicians or to the market.
Either way someone will complain 😅
fwiw, I still think Trichet at the ECB is still by far the worst central banker of the modern era. Clueless doesn't even come close to describing his (disastrous) time at the ECB!
I am a bit surprised there was no mention of Bernake. I am curious to why not. Thanks
I didn't think he fit the theme of the article but felt compelled to ask. I thoroughly enjoy your articles and books. Thanks