So you think they are simply responding to their duel mandate and it's as simple as that? With prices screaming higher that certainly appears to be the case as well.
You make some good points but the reasoning you provide does not seem to make all that much sense. Central banks don't raise rates so they can lower them later. Nor do central banks avoid negative ratea because it would be hard to explain to the public.
there wasn't any demand during the pandemic. prices plummetted until the government injected a ton of money. that stabilized prices. then demand picked up as the economy reopened, supply was constricted because everyone cut capacity, and the money was still out there = inflation. stable moderate inflation is a good thing. "moderate" because it encourages investment now and leaves buffer for deflation (which is really bad). "stable" because it allows you to do long term planning and forecasting.
Of course they are. It's easy to look back and judge. What rate decisions would you make if you were in their place given you had to target this dual mandate. They Re in a tough spot, partly because of their own past decisions.
It would then be cheaper for individuals and corporations to move into gold, silver, crypto, etc. How much money do you think the fed can pull from people's bank accounts each month before people take these actions and the velocity of M2 begins to rise rapidly?
Of course they are. It's easy to look back and judge. What rate decisions would you make if you were in their place given you had to target this dual mandate. They Re in a tough spot, partly because of their own past decisions.
That does not make them the same nor follow the same dynamics and does not require identical policies to manage.