Hi, it’s Ed Harrison and I write about markets and policy for Bloomberg’s Markets Live. This is The Everything Risk, where each week I’ll unpack the web of risks for consumers and investors in a shifting markets landscape.
It has become ever clearer that the Federal Reserve sees its sole policy mission right now as getting inflation under control. Every Fed official says so. In fact, financial markets are beginning to understand that the central bank is willing to risk recession — if that’s what it takes to bring price pressures down. We haven’t seen a Fed like this in 15 years. For those of us who saw the Fed dismissing inflation as a threat and resisting pulling out the accommodation even amid excessive hype in asset markets through much of last year, the change of tack is sobering.