During the last year, central banks worldwide, led by the U.S. Federal Reserve, have sought to lower inflation at any cost, even if it hurts people and companies.
With numerous high-profile banks catastrophes in the U.S. and Europe, that strategy has been questioned more than ever this month.
A British economist who foresaw the 2008 global financial meltdown says central banks choose "class conflict above financial stability."
The Fed and other central banks blame inflation on tight labor markets and high pay. ,
The Fed and other central banks blame inflation on tight labor markets and high pay. But, relaxing job markets might lead to layoffs,
unemployment, and a recession—an undesirable and hazardous trade-off for some opponents. “[C]ivil servants that head up central banks seem willing to sacrifice private banks and
global financial stability in their rush to raise rates, crush demand, discipline workers and shrink the nation's income,” wrote British economist Ann Pettifor in her Substack newsletter Sunday.
"They favor class conflict over financial stability." “Hard to confront central bankers” Silicon Valley Bank's collapse earlier this month was blamed on management, but the Fed also contributed.
As the government rescued SVB, the Fed was accused of preventing any mention of regulatory mistakes that may have caused the bank's failure.