- Jun 12, 2014
- 5,400
- 9,407
Founding Member
I see the Fed as complicit here. We passed $5.7 trillion in unfunded covid stimulus and through QE the Fed essentially printed money to cover $3.6 trillion of it. If they instead let the Treasury yields rise maybe that would provide the voters some feedback that you eventually run out of other people's money.This is not a FED issue. A lot of it is a fiscal issue.
They also printed money to artificially lower mortgage interest rates which drove the increase in housing prices. I am baffled as to why they thought that was a good idea. That's where we are seeing most of the inflation and there isn't much they can do about it. We learned in the housing crisis that if you let property values drop and people get upside down they will just dump the losses onto the mortgage holders which is disastrous to our financial systems.