BiggerPockets Money Podcast · Friday, October 2, 2026
Jay Scott posits that the Federal Reserve acts more as a reactive entity, akin to the rear steering of a fire engine, rather than a primary driver of the economy. He explains that the Fed's role is to steer the economy and prevent it from going off track, meaning its actions are largely a response to existing economic conditions rather than direct control.
“I think of the Fed as being the reactionary piece. The analogy that I've used in the past is if you have a fire engine, the fire engine is the economy. And the Fed is the guy in the back.”
“The economy is flying ahead and the Fed is kind of sitting in the back, kind of steering to make sure we don't go off the rails. They're the ones that are reactionary. And so the Fed doesn't necessarily control the economy. They have some influence over the economy, but more so they are reacting to what the economy is doing.”