The Federal Reserve has decided to recast its monetary policy strategy — replacing a longer run 2 percent inflation target with an average inflation targeting framework. According to Chairman Jerome Powell, the Fed will henceforth “seek to achieve inflation that averages 2 percent over time. Therefore, following periods when inflation has been running below 2 percent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for some time.”
Powell's view on this has been quite clear for some time. Like me he is worried the banking system will collapse under the weight of collecting Fed taxes.
He has no choice but to force the issue. He will get a New Fed contract one way or the other. At this point, he figures, a Nixon Shock is better than nothing. The Overton window is too psychologically tinged, and bringing up the words in public might cause psychotic hysteria among the massive Post Nixon Shock Syndrome sufferers.
It is a nightmare, it is like living under Soviet communism where every thing is fiction.
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