Description: The Federal Reserve deserves credit for saving the U.S. economy from a financial crisis with its initial response to the pandemic, but it continued injecting liquidity well beyond the point that markets exhibited any signs of illiquidity, said Wharton professor of international banking and finance Richard J. Herring on Wharton Business Daily on SiriusXM. (Listen to the full podcast above.) The Fed misread the signs for inflation, which led to distortions in the financial markets and exacerbated wealth inequalities, he added.

Source: https://knowledge.wharton.upenn.edu – podcast

Date: Sep 06, 2022

Link: https://knowledge.wharton.upenn.edu/article/hits-and-misses-of-the-feds-inflation-strategy/

Questions for discussion:

• Summarize the analysis and criticisms presented in the report.
• Do you agree with this assessment?