by Jay Davidson
American Thinker
Directors of the Federal Reserve board are admitting that inflation is not coming down, in spite of the massive increase in Fed Fund interest rates two years ago. That rate increase was touted as the solution to Jerome Powell’s “transitory” inflation. I said it wouldn’t work then, and it hasn’t.
Lisa D. Cook, a member of the Fed’s board of governors, said during a recent speech that the labor market has been “somewhat more resilient” since September while inflation has remained “stickier” than expected. “I think we can afford to proceed more cautiously with further cuts.”
Of course inflation is “sticky” — the Fed is not addressing inflation. The Fed caused it.
The solution to persistent inflation centers on the reason for inflation in the first place: excessive money supply. This bout of inflation started in 2008, when the Federal Reserve started printing money, thinking it would stimulate the economy.