How much should we trust the Feds?

The Federal Reserve's predictions and actions since the start of the COVID-19 pandemic have been consistently off the mark. Despite its efforts to mitigate the economic impact of the pandemic, the central bank's forecasts have been repeatedly proven wrong.

In March 2020, the Fed stated that inflation would not be a problem. However, inflation has since risen to levels not seen in decades, with no signs of slowing down.

In January 2021, the Fed stated that inflation was "transitory," but as prices continue to rise, it is clear that this prediction was incorrect.

In September 2021, the Fed stated that interest rates would not rise until 2024. However, with inflation rising faster than expected, the central bank may be forced to reconsider its timeline.

In January 2022, the Fed's statement that a recession was needed to lower inflation was met with skepticism, as recessions typically result in high levels of unemployment and economic hardship.

In December 2022, the Fed claimed that disinflation had begun, but inflation continued to rise in early 2023.

In February 2023, the Fed suggested that a "soft landing" was possible, but with rising inflation and uncertainty around interest rates, it remains to be seen whether this scenario is realistic.

Most recently, in March 2023, the Fed stated that the banking system was "stable." While this may be true in the short term, concerns remain about the long-term stability of the financial system, particularly with regards to inflation and interest rates.

Overall, the Fed's track record over the past few years suggests that it may need to rethink its approach to monetary policy and economic forecasting. As the pandemic continues to shape the global economy, the central bank will need to adapt to changing circumstances in order to effectively manage inflation and support economic growth.