Home Economy Letter: Fed chair has overloaded the economic lifeboat

Letter: Fed chair has overloaded the economic lifeboat

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Your leader “Powell deserves Democrats’ support” (FT View, July 24), which calls for a second term for the current Fed chair, concludes with “if it ain’t broke, don’t fix it”.

Yet in the same issue Merryn Somerset Webb tells us that the Beanie Baby bubble is simply the latest manifestation of super-low interest rates and quantitative easing. Ortenca Aliaj lets us know that investment bankers acknowledge that the Spac craze (her word, not mine) has been “an epic party followed by an epic hangover”. And John Dizard writes that Jay Powell’s policies have been draining “good collateral” from the financial markets and has laid the foundation for a crisis.

Add to this increased inequality, home prices which are at multiples of median income not seen since before America’s last housing crash, and used car prices which are higher than…

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