/biz/ - Business & Finance

>>54120750
The fed has to pretend it's committed to fighting inflation for two reasons:

1. Politically unacceptable to admit gov doesn't care.
2. Gov debt can only be sold if there are buyers (unless you're Japan, I guess). Who wants to buy USTs if they KNOW inflation is going to be >4% for a long time? So FED has to pretend it won't be, which means pretending to fight it.

But they can't fight it. Government debt and spending deficit is too great. Unlike many Euro and Asian countries, US gov didn't take advantage of ZIRP-er to refinance to long-term debt at low rates, so now it's rapidly turning over whilst they're also trying to reindustrialise AND fight an economic war with China and Russia AND subsidise a real war with Russia AND prepare for a real war with China AND turn over their entire infrastructure to enable 'green energy' AND transform their entire society in accordance with woke doctrine AND subsidise mass boomer retirement AND the entire hoverning apparatus is structurally incompetent.

Higher for longer inflation is the only choice. But they have to pretend it isn't.