Fed fearful of doing too little to stamp out soaring inflation | Financial Times

Federal Reserve officials signalled they are more concerned about doing too little to rein in soaring US inflation than doing too much and doubled down on plans to tighten monetary policy so it constrains the economy, according to an account of their latest meeting.

Minutes from the September meeting at which the Fed implemented its third consecutive 0.75 percentage point rate rise underscored the high bar for the central bank to back off in its historically aggressive campaign to bring prices under control.

According to the account, central bankers remain committed to purposefully tightening monetary policy in the face of broad-based and unacceptably high inflation .

via www.ft.com

The Fed has followed a zero interest rate policy since 2008 and now the chickens, grown to the size of dinosaurs, are coming home to roost. They did this apparently out of a combination of their self-serving neo-Keynesianism and much more old-fashioned and direct self-interest. Their policy of inflationism has crushed the great American middle class and given us a much uglier society of elites and the rest of us. 1980 was better, except we had worse phones.