Who's to Blame for a Recession, Biden or Powell?
The president has shifted blame for the rapid pace of price increases to the Fed, but the White House may not be ready for what comes next.
I’ve got this one, man.
Photographer: Samuel Corum/BloombergWhen inflation is raging in an important election year, the best political move may be to outsource the fight to central banks. After all, price stability is a huge part of their job. Government leaders might discover, though, that the cost of curbing inflation is an ugly recession. It’s unclear whether they’re prepared to handle that outcome.
With price increases running at the fastest pace in decades across Europe, the Americas and the Antipodes, there’s good reason to let monetary chiefs get on with their task absent political pressure. Central banks, in theory at least, are able to move quickly and free of the horse-trading that comes with legislative solutions.