Quote:
Originally Posted by Fuzz
That's far from the correct word. He isn't an oracle.
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It's strong but it isn't objectively wrong either.
1) he said interest rates would remain low
2) then he raised them
He has direct control over interest rates. I'm not saying he shouldn't have raised them, that was the right choice to fight inflation. But he shouldn't have said they'd remain low for years, because that caused people to make unnecessary economic mistakes. Basically making the economic pain worse for no gain.
I really hate it when powerful people hurt those weaker/less educated than themselves, which is absolutely what happened here.
He either knew or should have known that inflation was a likely outcome from worldwide massively expanding money supply and low interest rates, and that if it came through he'd have to go back on that and raise rates. I guess its also possible he's an idiot, but I think it's more likely he knew that wasn't true and said it anyway to further short term motives at the time.