The fundamental problem with the Federal Reserve, in one telling quote
The Federal Reserve released the minutes from its September meeting today. We learned the results of that meeting the day it ended, but the minutes can still provide a window into what's going on in the heads of the Fed officials who vote on monetary policy. Take this quote:
Consider that line against something you'd never read in the Fed minutes. Something like: "Other members responded that their contacts amongst the unemployed and low-income workers saw no evidence of rising wage pressure at all."
Fed officials understandably rely on their contacts throughout the world of business owners to gauge regional changes in the economy. Those contacts have vested interests in having monetary policy prioritize low inflation over low unemployment. That doesn't mean the stress and worries they're under are not genuine. But with the exception of recent activism efforts, people who desperately need job growth to continue have no equivalent access to Fed officials' ears. Cold aggregate data is all that speaks for them.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
That's bound to have an impact on how the Fed weighs it priorities. Hearing from people on the ground may be qualitative, not quantitative, but it can help parse the quantitative data. Human beings are social creatures, after all, and Fed officials are only human.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.
-
Unprepared for a pandemic
Opinion What happens if bird flu evolves to spread among humans?
By William Falk Published
-
6 impressive homes in Toronto
Feature Featuring floating stairs in Lytton Park and a two-tiered infinity pool in Banbury-Don Mills
By The Week Staff Published
-
Samantha Harvey's 6 favorite books that redefine how we see the world
Feature The Booker Prize-winning author recommends works by Marilynne Robinson, George Eliot, and more
By The Week US Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published