After reading Tim Duy's latest, I'm just reminded how weird Fed policy has been.
Consider that in 2004, when inflation was at 3.3%, the Fed was fine to leave the Federal Funds rate at 1%. 3.3% inflation wasn't seen as anything sinister during President Bush's reelection run. Now, however, with the CPI having increased so far this year by .2%, for an annual rate of less than .4%, we're suddenly in dire risk of hyperinflation? Isn't this just a bit too strange?
Either the Fed is as stupid as I suspect they are, or they are very competent but hopelessly in the tank for the Republican Party. How else does one explain the above?
Also, consider that in 2004, unemployment topped out at 5.8% (in March, declining thereafter). Compare that with 9.5% today. This Fed brings new meaning to the phrase 'regime switching'.
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