The Fed follows the one year

We are getting reports that the bankers were in error because they didn't follow the Congressional mandate. I have news, the Fed never follows the Fed mandate, and 85% of the time the Fed follows the one year. You can see it follow, time is the X axis.



Here is one post:
The Fed’s Mistake

The authors claim the Fed did not follow the Congressional mandate.  But the Congressional mandate was foul theory, one cannot set interest rates based on unemployment.  The authors thus simpleton, and the report not worth reading since it is based on a universal flawed concept.

In reality, the shadow banking system sets rates, via the one year treasury, and the Fed follows suit. In fact, Powell calls up the Goldman Sachs option desk before deciding, and the options desk does not do unemployment.

The Congressional mandate was hogwash from the beginning, never really considered sound theory by the Fed. It is a sad state of affairs when economists take Congress as their lead theorist, an illustration of very bad education.