A Federal Reserve Bank Admits Fed Unleashed the Inflation

The San Francisco Federal Reserve Bank, in a study released March 29 by its staff economists, “Why Is U.S. Inflation Higher than in Other Countries?” estimated that the combination of Federal Reserve zero rates, quantitative easing, and support of sudden trillions in new Federal government spending added 3% to the Consumer Price Index during 2020-21. The quantitative hair-splitting by the Fed economists may not mean much, and EIR already in September 2021 demonstrated a much larger Fed inflation “trigger,” using the famous LaRouche Triple Curve Typical Collapse Function. But since the Federal Reserve Banks of San Francisco and Minneapolis, with their staff economists, have pushed ZIRP and QE as hard or harder than any other official bodies, the admission is interesting. The report could conceivably have been brought out to signal capitulation to a much faster “quantitative tapering” by the Fed than has been expected until now. Its situation in the face of the current rise in inflation is quite desperate. (https://www.frbsf.org/economic-research/publications/economic-letter/2022/march/why-is-us-inflation-higher-than-in-other-countries/ )