And as much as Donald Trump doesn’t like it, the Fed shouldn’t follow the president’s orders. Its monetary policy role is “to promote maximum employment, stable prices and moderate long-term interest rates.”So how is it doing? As for that “stable prices” part… it depends on what you are buying. Source: Sebastian SienkiewiczThe Fed believes that 2% annual inflation equals “stable prices.” Yet that small amount adds up over time—to almost 50% in 20 years. While Fed officials may think they have tamed inflation, their ZIRP and QE actually drove real-world prices considerably higher than CPI or PCE show.

Source: Forbes December 19, 2019 13:52 UTC