Opinion | The Fed’s ultraloose monetary policy could hurt both the economy and Biden’s agenda

If the Fed maintains its present coverage stance, it dangers inadvertently creating an ideal storm for the U.S. financial system later this 12 months and early subsequent 12 months: a mixture of excessive inflation, slowing progress and monetary instability. This could include political and social penalties that might additional undermine the much-needed financial restoration and expose probably the most susceptible segments of our inhabitants to extra ache. And it could take maintain at a second when, because of persistently excessive inflation, the Fed would really feel pressured to slam on the financial coverage brakes, aggravating each factor of this unlucky combine.