The Federal Reserve’s legal mandate is clear. It must focus on stable prices and maximum employment. In the past five years, the Fed has failed on both. Inflation remains materially above the 2 percent target, reaching a decade-high 25% cumulative inflation in the 2021-2025 period, while restrictive monetary conditions have been limited to rate hikes, … Continue reading The Fed Is Failing Its Mandate, But It Could Change Soon →

The latest U.S. inflation report and jobs data do not justify another interest rate increase. Additionally, June data show that inflation is slowing down, especially in the core CPI measure that is most closely watched by monetary authorities, while ongoing tightening is stopping the labor market from reaching its full potential. Hiking rates while maintaining … Continue reading Another Fed Rate Hike Would Be a Serious Mistake →

In 2025, the mainstream Keynesian narrative that the United States would inevitably experience a recession and stagflation has proven to be utterly incorrect. The American economy is performing much better than its comparable nations, is showing broad-based strength, and even has indications of accelerating growth, giving investors and consumers plenty of reason to feel more … Continue reading The Fed Models Were Wrong About The US Economy →

Both the recent spike in inflation and the current decline in US jobs are, in a very significant way, the fault of the Federal Reserve. The Fed’s policies since 2021 reveal a nightmare “pendulum” effect: first, easy money and historic liquidity expansion fueled runaway inflation; then, rapid rate hikes hurt businesses and families as well … Continue reading The Fed caused high inflation and the current jobs slump. →