However, if you look at market-based price indicators, the Fed may have already done enough. I’m thinking of the upside-down yield curve, where short-term rates are way above longer-term yields. I’m also thinking of broad-based commodity indexes that really have been softening for over a year and a nod to Milton Friedman’s M2 money supply, which has collapsed over the past 18 months. is that the Fed doesn’t pay any attention to them.
In other words, too many people are working, and that must be inflationary. If you think that’s a stupid idea, you would be right. More people working and producing goods and services is counterBack to the Reagan appointees and I would include former Fed chair Alan Greenspan – also appointed by the Gipper – who testified before Congress that gold was an important inflation indicator. This group of Fed officials launched 20 years of price stability by using market-based price indicators.
6/15/1987-Washington, DC- President Reagan poses for photographers following his 6/15 nationally televised address to the nation. Reagan announced that the United States will formally propose the global elimination of all shorter-rI’m not saying inflation is over yet — specially with Joe Biden’s tax, spend, and regulate policies, which have stifled the economy and undermined incentives to work and invest.