Even with inflation running below target, the Fed chose to raise interest rates again. The Fed’s influence is overstated, but it’s still troubling that major policymakers are acting on such an outdated view of the economy.
Much has been made of the candidates’ sharp differences, but there’s one area where they have put forward remarkably similar plans. Both candidates agree: repatriate offshore cash, invest in infrastructure
Endlessly debating the actions of the Fed, either by political candidates or financial talking heads, has become a sideshow that distracts from the real workings of the economy and the stock market.
The internet economy may be in the early stages of transforming our daily lives, but it’s already wreaking havoc on economic policy. As mentioned at the top of this piece, the Fed cannot manage to hit its 2% inflation target no matter how hard it tries, so maybe it should stop trying.