Fed’s credibility can’t take a soft landing

Bloomberg/Allison Schräger/3-1-2023

“Someone is in denial over inflation — either investors or Federal Reserve policymakers. But no matter how things play out, the disconnect suggests the Fed has lost its credibility. Or perhaps it never had it to begin with. And if that’s the case, soft landing or hard, one casualty of this economy could be the Fed’s inflation-targeting regime.”

USAGOLD note: We are in the group that never really understood the value of inflation targeting.  One wonders if the Fed puts much stock in it at this juncture as well. The measures required to bring inflation to target would throw the economy into financial and economic depression, so what’s the point of even discussing it?