The Fed Is Doing the Worst Job Ever by Abusing Discretion

The Fed Is Doing the Worst Job Ever by Abusing Discretion
Shoppers browse in a supermarket in St. Louis, Missouri, on April 4, 2020. Lawrence Bryant/Reuters
Law Ka-chung
Updated:
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Commentary

Although inflation has been falling in most of the advanced economies, the rates haven’t reached the targeted values. All central bankers claim success but don’t know when their rate hikes will successfully control inflation. This uncertainty refers not just to the long-term but to the lack of any forecasting in the lead-up to the next policy meeting. Judged this way, central banks are now employing an entirely discretionary strategy.

Law Ka-chung
Law Ka-chung
Author
Law Ka-chung is a commentator on global macroeconomics and markets. He has been writing numerous newspaper and magazine columns and talking about markets on various TV, radio, and online channels in Hong Kong since 2005. He covers all types of economics and finance topics in the United States, Europe, and Asia, ranging from macroeconomic theories to market outlook for equities, currencies, rates, yields, and commodities. He has been the chief economist and strategist at a Hong Kong branch of the fifth-largest Chinese bank for more than 12 years. He has a Ph.D. in Economics, MSc in Mathematics, and MSc in Astrophysics.
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