No, the Fed would never say they didn't care about the economy. I think you mean that they had been willing to increase unemployment and bring a recession if that had been necessary to lower inflation.
No, the Fed would never say they didn't care about the economy. I think you mean that they had been willing to increase unemployment and bring a recession if that had been necessary to lower inflation.
Yeah, they're required to weigh the tradeoff between inflation risk and recession risk. Up through this summer they had been more worried about inflation risk. Now they're more worried about recession risk, not because recession risk is especially high but because inflation risk has receded.
No, the Fed would never say they didn't care about the economy. I think you mean that they had been willing to increase unemployment and bring a recession if that had been necessary to lower inflation.
So basically they did say that but in a different way.
Yeah, they're required to weigh the tradeoff between inflation risk and recession risk. Up through this summer they had been more worried about inflation risk. Now they're more worried about recession risk, not because recession risk is especially high but because inflation risk has receded.