Federal Reserve Bank President Says Climbing Price Inflation is a 'High Class Problem'

Neel Kashkari

 As far as I am concerned all the monetary policy-making members of the Federal Reserve have no clue as to how the economy works and are at present conducting completely irresponsible money pumping.

But the most confused of the bunch has to be Minneapolis Fed President Neel Kashkari.

 MarketWatch reports that on Friday, Kashkari played down investor fears over runaway inflation, saying a spike in prices would be a “high-class problem” for the Fed.

Now, of course, once the Fed deems inflation to high the only way to battle it is to slow or eliminate money printing. This then brings on the bust phase of the Fed-created business cycle.

But to understand how unclear  Kashkari's thinking is on the matter, after saying high inflation was a high-class problem, in a speech he delivered to the Council of Institutional Investors, he said that the U.S. financial system is “absurd” because it has needed a central bank bailout twice in less than 20 years.

Of course, he fails to mention the role the Fed and the government had in these collapses. The first being the standard Fed-created boom-bust cycle and the second being the government decreed lockdowns.

Does Kaskari not understand this?

I just set him a copy of The Fed Flunks: My Speech at the New York Federal Reserve Bank and Austrian School Business Cycle Theory.

-RW

(ht Kenny Reed)