- US Treasury Secretary Janet Yellen and Fed Chair Jerome Powell’s support of trillions in government stimulus during Covid was seemingly motivated by fears of repeating past mistakes.
- While the Fed slashed interest rates and Congress passed a then-record $787 billion stimulus package, the sluggish growth out of the ‘Great Recession’ (2008-09) was later partially blamed on too little government stimulus.
- Yellen and Powell initially labelled current inflation as “transitory” that would ease with declining Covid given the limited inflationary impact of 2008-09 stimulus.
How Did Yellen and Powell Get Inflation So Wrong?
(06/10/2022)
