*While some officials are reluctant to accept it, Fed Chair Jerome Powell now acknowledges the Fed’s mistakes. When asked in a recent interview whether the Fed was too slow to recognize inflation in 2021, Chair Powell admitted, “in hindsight, it would’ve been better to have tightened policy earlier.”
In truth, the Fed was not simply too slow to recognize inflation. Rather, it worsened inflation by continuing its monetary expansion even after the negative effects were known.*
They've already signaled they were probably wrong about tariff inflation too.
Hold out hope though H! Powell could still blunder us into a recession like Greenspan did.
