So what's changed?
From the Fall of 2008 until November 8, 2016, the Federal Reserve was content to build up a $ 4.5 trilllion balance sheet and leave short term rates below one percent.
What is different now?
According to today's Wall Street Journal, the Federal Reserve is now, for the first time since 2008, contemplating reducing the Federal Reserve balance sheet. Not only that, the Fed has raised the repo and funds rate this year already and promises to repeat the exercise twice more this year. Why?
What makes 2017 the appropriate year? What facts are different that leads the Fed to want to raise rates and reduce borrowing capacity in the economy (reducing the Fed balance sheet will, of necessity, reduce the level of excess reserves in the commercial banking system)?
Guess who Janet Yellen voted for? That's right -- Hillary Clinton.
Does anyone really believe in Fed independence? What a joke.
The (political) Fed should be abolished and monetary policy should be replaced by a fixed rule.
The Fed is just one more political animal threatening the economic and political health of the country. Get rid of it.