The eagle statue sits on the Marriner S. Eccles building of the Federal Reserve Board in Washington, D.C., on Aug. 6, 2025. Alex Wong/Getty Images
Commentary
Easing and tightening decisions move all assets from bonds to private equity. Their role is supposed to be to control inflation, provide price stability, and ensure normal market functions. However, there is little evidence of any success in achieving their goals. The era of central bank dominance has been characterised by boom-and-bust cycles, financial crises, policy incentives to increase government spending and debt, and persistent inflation. Recently developed economies’ central banks have taken an increasingly interventionist role.
