Thursday, February 16, 2017

Fed Chair is Not Independent

The Federal Reserve is supposed to be an independent agency.  But, it is not.

Yesterday, Janet Yellen, the current Fed Chairman, was openly partisan in describing her total opposition to rolling back the oppressive Dodd-Frank regulatory regime.  Her views are not much different than her political compatriot Elizabeth Warren.  None of this, of course, had anything at all to do with monetary policy.

The Fed is supposed to be about fighting inflation, but that isn't what the Fed does these days.  The Fed should be replaced by a simple monetary rule which would make the Fed truly independent and far less destabilizing on the American economy.

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