Supply Shocks Are Here to Stay. Is the Fed Ready to Face That Fact?

HOLD ON I HAVE TO TELL YOU THIS ONE BECAUSE APPARENTLY THE NEW YORK TIMES IS ABSOLUTELY FURIOUS AT THE FEDERAL RESERVE RIGHT NOW AND THEY ARE SAYING THAT SUPPLY SHOCKS ARE NOT JUST A ONE-TIME THING BUT ARE ACTUALLY ENDEMIC TO THE GLOBAL ECONOMY NOW WHICH IS WILD BECAUSE IT MEANS WE ARE DEALING WITH CONSTANT DISRUPTION AND THE FED IS SUPPOSEDLY NOT READY TO FACE THAT FACT AT ALL. SO NOW THEY ARE ARGUING THAT IF SHOCKS ARE PERMANENT THE WHOLE STRATEGY OF JUST FIDDLING WITH INTEREST RATES MIGHT BE TOTALLY OUTDATED AND WE ARE ALL JUST SITTING HERE WAITING FOR THE NEXT THING TO BREAK THE SUPPLY CHAIN AGAIN. IT IS HONESTLY STRESSFUL JUST THINKING ABOUT THE PRICES IF NO ONE HAS A REAL PLAN FOR WHEN STUFF KEEPS GETTING HARDER TO FIND. ANYWAY REMIND ME TO LOOK THIS UP TOMORROW.

I PROMISE I AM NOT BEING DRAMATIC BUT I AM LOOKING AT THIS OPINION PIECE AND IT IS TELLING US THAT SUPPLY SHOCKS ARE HERE TO STAY FOREVER WHICH SOUNDS TERRIBLE. THE AUTHOR IS QUESTIONING IF THE FED IS EVEN PREPARED TO DEAL WITH AN ECONOMY WHERE SUPPLY CHAIN DISRUPTIONS ARE JUST THE NORMAL STATE OF AFFAIRS BECAUSE APPARENTLY THEY ARE STILL OPERATING LIKE THESE ARE JUST TEMPORARY BLIPS. IT IS HONESTLY FRUSTRATING BECAUSE IF THE FED DOES NOT HAVE A NEW PLAYBOOK FOR A PERMANENTLY BROKEN SUPPLY CHAIN THEN WE ARE JUST FLYING BLIND INTO MORE INFLATION OR WHATEVER THE HECK HAPPENS WHEN GLOBAL TRADE STUTTERS CONSTANTLY. I DO NOT KNOW IF THE FED HAS A SECRET PLAN OR IF THEY ARE JUST AS LOST AS WE ARE BUT THIS ARTICLE SEEMS TO THINK THEY ARE PRETTY UNPREPARED. ANYWAY I WILL BE THINKING ABOUT THIS IN THE TAXI.

A New York Times opinion piece argues that supply shocks have become endemic to the global economy and questions whether the Federal Reserve is prepared to adapt its policy strategy accordingly.

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