What I meant is that the Fed has always been political, just look at the mandate:
1) Price stability which is a way of saying keep inflation low. That's because the population was scarred by inflation in the past and wants institutions to protect against it.
2) Maximum employment: Is there anything more political than this? People were scarred by losing their jobs in the past and want institutions to protect against such thing.
If the Fed was harsh on equity markets before, then it solely means that in their perception it was the best way to be popular and keep their job.
Every human wants to be popular and keep their job, so that's the motive behind every choice, doesn't matter if you are the Fed chair or the POTUS or a McDonald's employee.
The only people who sort of have some freedom to sacrifice short term popularity in order to achive long term popularity are the ones which have their job as a guarantee: Dictators essentially...and only some of them.
1) Price stability which is a way of saying keep inflation low. That's because the population was scarred by inflation in the past and wants institutions to protect against it.
2) Maximum employment: Is there anything more political than this? People were scarred by losing their jobs in the past and want institutions to protect against such thing.
If the Fed was harsh on equity markets before, then it solely means that in their perception it was the best way to be popular and keep their job.
Every human wants to be popular and keep their job, so that's the motive behind every choice, doesn't matter if you are the Fed chair or the POTUS or a McDonald's employee.
The only people who sort of have some freedom to sacrifice short term popularity in order to achive long term popularity are the ones which have their job as a guarantee: Dictators essentially...and only some of them.