There is little understanding regarding independence or diversity in our banking system. The Federal Reserve Bank, we are told, has to be independent. As a result, it failed to see an obvious inflation storm coming. This group-think disaster happened while Asian Central Banks kept inflation low. The Fed rejected all diversity of view, or changes to its predictive monetary models.
Then there were the Fed advocates giving into international consensus thinking, even when it was wrong. In 2021, the press never provided the public with the case against quantitative easing, or providing ultra low interest rates. The case against excessive quantitative easing and excessive government spending of money it doesn’t have, has now delivered trouble to anyone with an IRA, investments, or members of a pension fund.
Key posts, like chairman of the Fed, are confirmed by the government of the day. Party political bias seems to not be a problem. The government suggesting to the Fed where interest rates should be set also seems not to be a problem.
The fixed, limited, narrow, wrong forecasting and thinking by the Fed is a continuing problem. They must find more diversity of thought, and need to consider more independent challenges to their consensual group think.
Gary Whitley
Arlington
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