The answer to your question has nothing to do with macro. The Fed will respond to inflation when, as and to the extent that doing so becomes politically necessary.
Keep in mind that, in spite of a pandemic and manifest, roaring incompetence on full display both before and during, if a few thousand votes in swing states had gone the other way, Trump would have ben re-elected.
Right now Biden and others are in "buying support" mode. Without the fear of populism, there would be no unseemly talk of loose fiscal policy. Without fear of a market letdown, monetary policy would have tightened long ago.
If it is not already obvious enough, nothing in the above post is intended as an endorsement of any candidate or politician. However, the elites should be afraid of a competent populist.
The answer to your question has nothing to do with macro. The Fed will respond to inflation when, as and to the extent that doing so becomes politically necessary.
Keep in mind that, in spite of a pandemic and manifest, roaring incompetence on full display both before and during, if a few thousand votes in swing states had gone the other way, Trump would have ben re-elected.
Right now Biden and others are in "buying support" mode. Without the fear of populism, there would be no unseemly talk of loose fiscal policy. Without fear of a market letdown, monetary policy would have tightened long ago.
If it is not already obvious enough, nothing in the above post is intended as an endorsement of any candidate or politician. However, the elites should be afraid of a competent populist.
Thanks- interesting selection of data points