How the Fed Turns Good News Into Bad

How the Fed Turns Good News Into Bad
AP Photo/Manuel Balce Ceneta

Pop quiz! Are these events good news or bad news for the Federal Reserve?

  • China announces plans to build a lot more steel plants.
  • New innovation makes it possible to extract oil and natural gas more cheaply.
  • Robotics enhancements allow manufacturers to produce more output with fewer workers.

In principle, all would reduce inflation. 

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