Cathie Wood regularly says the FED today gone too far with rate rises, saying they have raised rates 20 times from their 0.25% lows in 2020, where as in the early 1980 Volcker only doubled rates from about 10% to 20% is this a good way of looking at it?

While what she is saying is factually accurate, does anyone have any literature about if this is the right way to be looking at it?

  • $\begingroup$ What exactly you mean by good/right way of looking at it? In itself its just statements of fact, there is a lot of literature on how to optimally set interest rate in response to inflation/unemployment, and I think most economists would just say that Fed is roughly following so called Taylor rule which many economists consider reasonable rule for monetary policy, but if you just want to measure the change in interest rate between two time periods then calculating change as a rate is completely fine way of looking at it $\endgroup$
    – 1muflon1
    Jul 23, 2023 at 20:02
  • $\begingroup$ It's a misleading statement used by anyone who wants to emphasize a certain viewpoint. $\endgroup$
    – AKdemy
    Jul 23, 2023 at 23:19


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