The Fed's late start to hiking (beginning in March 2022 vs earlier) was actually justified given the transitory shock hypothesis, because multiple supply shocks (COVID, Delta, ports, Russia) meant you didn't know if tightening would help; waiting to see if inflation self-corrected was rational policy.
normativepending
Speaker
Mark DaEvidence Quote
“wait until the absolute last minute for inflation to correct...the nature of the shock was transitory”
Created: 8/11/2026, 1:22:08 AM
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