The Fed's Role in Inflation and Unintended Consequences

The podcast episode discusses the role of the US Federal Reserve in the return of inflation and its response to the COVID-19 pandemic. It explores the question of whether the Fed is to blame for causing the recent inflationary trends. The episode highlights that central banks have gained significant power and responsibility, but also face the challenge of earning public legitimacy. It delves into the historical context, institutional memory, and unintended consequences of the Fed's monetary policies, particularly in relation to balance sheet expansion. The podcast also examines the interplay between central banks and politicians in influencing inflation and government spending.