The Fed has embraced the ‘punchbowl’ and has no intention of taking it away

CNBC/Jeff Cox

Repost from 3-29-2021

“The Federal Reserve has come a long way from the days of warning about ‘irrational exuberance.’”

USAGOLD note:  We have commented more than once on the Fed’s extreme change from inflation fighter to inflation inducer. We would kick the discussion up a notch to say that not only has the Fed embraced the punchbowl, it has spiked it with 100 proof vodka. San Francisco Fed’s Mary Daly comments on removing the punch bowl just as the party is getting started is telling: “That’s something that worked maybe in the past, definitely doesn’t work now, and we’re committed to leaving that punchbowl or monetary policy accommodation in place until the job is fully and truly done.” All of which begs the question, ‘How does know when the job is fully and truly done?’

Related: “Scoop: House progressives want Biden to supersize spending“/Axios/Jonathan Swan/3-26-2021