In a changing financial climate, as with other forms of climate change, adaptation is healthier than denial. Pulling all these factors together, I hope you will appreciate that there is more to our analysis than just assessing whether current inflation is driven by demand- or supply-side factors.
I like to tell people that the Fed is a uniquely American institution. What do I mean by that? Well, relative to its counterparts around the world, the U.S. central bank is highly decentralized. The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington, D.C., make up the Federal Reserve System.