The Intelligence from The Economist Money printer slow brrr: the Fed turns down the taps
Dec 16, 2021
Simon Rabinovich, U.S. economics editor for The Economist, sheds light on the Federal Reserve's rapid tapering of bond-buying to combat inflation. Mia Ridge, US news editor, discusses the alarming rise of loneliness among American men, linked to shrinking social circles and mental health challenges. The conversation also touches on the dominance of older artists in holiday music charts, reflecting changing trends in music consumption. Together, they explore these pressing issues that reveal deeper societal shifts in America.
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Fed's Inflation View
- The Federal Reserve's view on inflation has shifted.
- Initially, they believed it was transitory, but now recognize its persistence.
Accelerated Tapering
- The Fed is accelerating its tapering of bond purchases.
- This is a key step towards tightening monetary policy and controlling inflation.
Omicron's Impact
- Despite Omicron concerns, the Fed maintains confidence in the US economy.
- Their decisions are based on underlying economic strength and the ability to adapt to the virus.