The truth about the Fed is that it’s a dangerous institution that’s lost its way. It’s filled with academics who’ve little idea of how policy plays out in the real world.
Janet Yellen was chief proponent of a 2% inflation target (2012 FOMC transcripts) behind which the Fed has hid for a generation to keep QE at full tilt which is the primary DRIVER of the inequality she wants to fix.
The Fed has given up key tenets of capitalism—price discovery and free markets—to attain goals that these mid-level, marginally competent bureaucrats perceive to be valid. Being stupid is like being dead: everybody suffers but you.
The Fed has 400+ economics PhDs and 150+ research assistants on payroll and access to the best real-time economic data before anyone else. How did all these people, with their supposed “sophisticated understanding of economics,” screw up their analysis of inflation so badly?