The Imaginary World of Fed "Independence"
The rhetoric of independence allows the Treasury and the Fed to cooperate when convenient and deflect blame when something goes wrong.
Source: Mises Institute
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DW NOTE
The Fed bought $4.3 trillion in assets between 2020 and 2022 to suppress borrowing costs while the Treasury ran deficits of equal magnitude. When inflation arrived, the Fed blamed supply chains and the Treasury blamed Putin. Independence is a story both institutions tell when coordination becomes inconvenient to admit.