Why does the fed want to lower inflation so much? Any chance they will just give up and let the market run?

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Do you want to pay $10,000 for an apple and get pid the same salary you are making now?

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No.

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Read up about countries with hyperinflation in history and you’ll find your answer.

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High sustained inflation is extremely destabilizing in an economy and society. People can’t maintain their standard of living and there are feedback loops in an economy that can accelerate inflation as actors respond to it: increasing sales prices to account for higher input costs, increasing salaries, buying hard assets to protect value (thus bidding up prices of assets), holding cash in other currencies (thus putting more of your currency into the open market). Even without getting to Weimar Republic or Zimbabwe levels of inflation you can see politics violence and extremism.

So the stakes are high. If the Fed just gives in to inflation, they will have abdicated their reason for existence. Price stability is part of the Fed’s legislative mandate. Further, the Fed would blow up whatever credibility they have left. Politicians and the market would have no reason to listen to them if they can just manufacture a minor crisis. In reality, you’d probably see the Fed dismantled or significantly reformed.

So giving up on fighting inflation is not in the interest of most people.

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Thanks. The wage price spiral issue is really big. Makes sense.

Is this a serious question

funny

Because inflation will ruin everything we have

Nah I rather them fight it

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