The Fed has a problem. It’s in the business of creating money, but it formulates monetary policy without regard to money itself. So in times when its policy decisions produced a record surge in broad money, policymakers are not attentive or alerted to the negative (inflation) consequences.
From February 2020 to the end of 2021, broad money increased by $6.5 trillion or over 40%. That increase over less than two years is roughly equivalent to the rise over the previous ten years. Yet, policymakers who have long argued that “inflation is always and everywhere a monetary phenomenon” called the surge in inflation transitory, owing to supply bottlenecks. Had policymakers still recognized money as a potential source of inflation, it would not be in the pickle that they find themselves today.
Policymakers now face the unprecedented challenge of dealing with consumer and producer inflation and elevated asset prices (possibly bubbles.) Policymakers’ record on reversing inflation cycles and recognizing asset bubbles is lousy. Policy adjustments have always been late (except for Greenspan’s 1994 preemptive strike), resulting in awful economic and financial outcomes, some much worse than others.
ALL the Money Stolen by Democrats in Congress & White House is the Problem !!!!!! Pork in their Bills !!!!