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Translated by: Himalaya Oxford Visionary-boylatin1L
It is reported on May 16, that Bernanke, who guided the Fed through the 2008 financial crisis and implemented unprecedented Quantitative Easing (QE), said that although the question of when to curb inflation is complicated, the real question is why did the Fed postpone it. Why is there a delay in response? It doesn’t seem right. Bernanke believes that the Fed agrees that this is a mistake.
Bernanke said that gradualism is one of several reasons the Fed did not respond more quickly to inflationary pressures in mid-2021. And that the current high inflation, with prices rising at such a high rate, is entirely different from the hyperinflation of the late 1970s and early 1980s.
Several Fed officials have defended their policy response, saying that when inflation is more persistent, they have begun using “forward guidance” to tell the market that tighter policies are coming.
When inflation starts to rise above the Fed’s 2% target in the spring of 2021, policymakers say specific factors triggered by the pandemic will wane and expect high inflation to be “temporary”.
The report said the Fed is actively tightening policy but faced criticism from all sides for dragging its feet for too long before pulling policy. Meanwhile, the U.S. economy is facing high inflation running at 8.3%.
Reference:
https://gnews.org/zh-hans/2543746/
Edited by: MikeHua
Posted by: Peter Chen
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