Fed's 'Transitory' Market Prices: A Realistic Outlook

The Federal Reserve's handling of inflation has been widely criticized, but according to John Tamny, the issue lies not in what the Fed did, but rather in what it promised. In his article for RealClearMarkets, Tamny argues that the Fed was correct when it labeled market prices as 'transitory', but wrong when it suggested that these issues could be fixed quickly.

The problem, Tamny says, is that politicians broke things and then expected the Fed to fix them swiftly. This expectation is unrealistic, given the complexity of economic systems and the time required for adjustments to take hold.