The author of this piece @Claudia_Sahm has it wrong. The answer is to give up on the Fed and to actually turn to politics. Congress needs to address our political problems, and handing it over to the Fed to take care of Wall Street was the wrong move. nytimes.com/2020/10/16/opi…
What I mean here is that the Fed needs to *let the stock market crash* and refuse to engage in fiscal policy. And Congress needs to replace the FOMC with a Congressional committee. That's what pushing Congress means, not Jay Powell murmuring at hearings.
https://twitter.com/matthewstoller/status/1317097298392981504
I'm well aware that @Claudia_Sahm has been saying Congress needs to act. My point is, that doesn't matter, the problem is institutional. Congress is the only body that can address our problems, and the Fed is putting Congress to sleep by taking care of the stock markets.
The 'Fed needs to do more and so does Congress' side is irresponsible. That's a bunch of left-wing economists too afraid of democracy to let elected officials govern. They want the Fed to be central to policymaking, but to not have actual accountability. It doesn't work that way!
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