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dragontamer ,

Soccer moms say ‘I want to keep my job’.

Which is interpreted to be ‘We must avoid deflation’ by the Fed. Because these two statements are one and the same.

Between the choice of widespread unemployment vs fixing inflation, the policymakers came up with the current strategy. Lower inflation (aka: first derivative of price chances), which should hold jobs steadier than other options.

The Fed has a very blunt instrument for economic policy. It’s either lose jobs but fix inflation (aka higher rates), or more jobs but inflation gets out of hand (aka lower rates).

That’s just how the world works. Those are the only two choices the Fed has.

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