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https://www.wsj.com/articles/the-feds-policies-haunt-financial-markets-interest-rate-supply-growth-demand-inflation-f40a4ad5

The Fed’s Policies Haunt Financial Markets

Paying people not to work is inflationary; paying people to increase supplies of goods and services isn’t.

By Judy Shelton

March 22, 2023 1:09 pm ET

Wonder Land: How is it that the U.S. Treasury, Federal Reserve and Federal Deposit Insurance Corporation could have been spooked into a premature all-depositor bailout following hysterics on a social-media platform? Images: Shutterstock/Zuma Press Composite: Mark Kelly

Growth prospects for the economy are mixed, with recessionary fears still looming even as the unemployment rate is puzzlingly low. The worst inflation in 40 years seems to be coming down, albeit slowly and not with certainty.

Does that mean the Federal Reserve’s model is working? Yes and no, which is a problem. Worry about the Fed, and its ability to make the right decisions about monetary policy, is haunting financial markets.

Opinion

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