At some point we will all regret the “I did my own research” and “don’t trust the media” stances.
We certainly need more-professional media but something about social media broke everything to do with the consumption of information and we are headed towards a dark place because of it. The algo amplifies the worst stuff and leaves us grasping for verifiable hard news. That’s particularly true now as everyone tries to figure out what’s actually happening in Iran.
Aside from the headline, Goolsbee’s speech focuses on themes like central bank independence, which he says is critically important. He also said that everyone on the Fed takes the job very seriously and that the Federated structure of the central bank has worked well.
All that said, those assumptions will be put to a stern test in the months ahead. US inflation is sure to rise if oil stays up here and that should really rule out Fed rate cuts. Of course, some of the Fed will argue that’s a one-off factor but with tariffs, it’s now a two-off and then you add in healthcare inflation and it’s a three-off. At some point, that argument just doesn’t work as the public continues to pay 3% more than they did last year.
The Fed has missed its inflation target in every year this decade and oil alone at these levels will mean that it will do so again in 2026.
So while Goolsbee laments declining trust in institutions, he voted for rate cuts and has contributed to the failure of the Fed to meet its inflation mandate.
Ultimately, the ‘trust in institutions’ argument goes back to whether or not people did their jobs. Whether it was lying about weapons of mass destruction or transitory inflation, you can’t really cry about a wake-up call for institutions. Unfortunately, the response seems to be more propaganda rather than higher standards and more-professional leadership.
