I think you simply ascribe too much power to them. There’s plenty of times they’re just pissing in the wind. The low rates were supposed to facilitate lending post crisis, and mostly failed. There’s just too many moving parts in the machine for them to exercise real control. I’m not really a finance guy, but I even wonder if the Volcker rate rise in the early 80s that ended the 70’s inflation would even work in today’s more complex markets.
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