Persistent Inflation - and the Non-Partisan Fed--James Galbraith

[June Zaccone]

Think Again About Persistent Inflation - and the Non-Partisan Fed Nov 18, 2022 James K. Galbraith https://www.project-syndicate.org/commentary/inflation-not-persistent-fed-guided-by-politics-by-james-k-galbraith-2022-11

Two days after the midterm elections in the United States, the Financial Times reported that US inflation has slowed, markets are “giddy,” and the Federal Reserve may now ease up on its interest-rate hikes. The timing was strategic, given that the push from oil prices ended in June, and that overall price changes have been low since July. With the election over, it seems, now it is safe to admit the facts....

America’s central bank is dominated by partisan Republicans from the business class – in financial circles, at the regional Federal Reserve Banks, and on the Federal Reserve Board, where Democratic presidents habitually reappoint Republican chairs – as Bill Clinton did with Alan Greenspan, Barack Obama with Ben Bernanke, and Joe Biden with Powell. Democrats who serve are habitually non-partisan – or hard-liners projecting an image. The result is that pressure for tight policies hits harder when Democrats are in power than when Republicans are.....

 

--

June Zaccone
National Jobs for All Network
http://www.njfac.org