The Fed's Dilemma: Balancing Inflation and Financial Stability.

The ongoing fight of the Federal Reserve to bring down inflation with increasingly tight monetary policy has led to market volatility over the past year. Critics argue that the central bank made a "mistake" by being too slow to remove stimulative monetary policy. However, assuming the Fed did hit the brakes on the economy when inflation started heating up in 2021, it's unlikely the economy would be as strong as it is today. The number of people who've gotten jobs during this period of high inflation is massive, and the money earned by these newly employed people is helping to keep inflation high. The trade-off between high inflation and high unemployment is a philosophical inquiry, and it's hard to say which is worse.