Supply shocks weren’t random. They were strategic—and should be seen as 'supply coercion' instead, former Fed official says

(Credit: Press Office of Islamic Revolutionary Guard Corps / Handout/Anadolu via Getty Images)

As the Federal Reserve considers how to respond to the latest inflationary spike, a former central banker has warned that the traditional monetary policy playbook doesn’t apply.

In a Substack post last week, former Philadelphia Fed President Patrick Harker argued that the term “supply shock” is a mischaracterization of what’s really been going on in recent years.