
Monetary policy and financial stability
Center For Investment Excellence
The Fed's Decision to Separate Monetary Policy From Banking Policy
The Fed has clearly chosen to separate monetary policy from banking policy, which arguably is the right way to go about it. I think when you step back from the near term stuff though, and you look at the Fed's behavior over the last couple of years, clearly they got behind the curve on inflation and they have been playing catch up. It remains to be seen whether they are going to blink as it were because of the banking crisis. The key thing to recognize is that inflation is still public enemy number one here.
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