The Fed’s Dangerous New Strategy
The US Federal Reserve's recent changes to its monetary policy framework are ill-advised and potentially harmful. They also fail to address a number of other crucial problems. The Fed should scrap this new approach, and instead make full and effective use of the policy instruments it has – or could have – at its disposal.
https://prosyn.org/Q3jtHdM
NEW YORK – On August 27, the US Federal Reserve issued a press release summarizing updates to its longer-run goals and monetary-policy strategy, and Fed Chair Jerome Powell discussed the revisions at greater length in a speech later the same day. The two documents are a collection of type I and type II errors. If the Fed were to pursue the new strategy determinedly, it could inflict real economic damage on the United States and the world.