Nobody knows whether Fed decisions matter, but people act like they do. They do so on the basis of faith, not facts.
The Fed, the US’s central bank, will soon meet to decide what to do about interest rates. While nobody expects a rate hike, the Fed says people still have too many jobs and make too much money. It needs to “drain liquidity” and “weaken the labor market.” Higher for longer, as it says. All in pursuit of two goals: maximum employment and stable prices. A lot of people place a lot of faith in the Fed’s capacity to accomplish these goals. The crypto market obsesses over the Fed’s decisions.
goals, SHMART goals , the Fed says maximum employment is “not directly measurable and changes over time,” therefore it’s not appropriate to define a goal. In its Statement on Longer-Run Goals and Monetary Policy Strategy For stable prices, it sets an average of 2% inflation over time, with no standard for how to calculate that average.
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