Wednesday, June 7, 2017

Federal Reserve Policy is Ridiculous

The Federal Reserve is embarrassing and Janet Yellen and her cohorts would produce more social good if they put off meeting again for a few years, rather than to continue the absurdities that have come to be known as Fed Policy.

The Fed now claims it is on a path to raise interest rates.  Could of fooled me.  Every interest rate of any relevance to the economy has come straight down during the Fed "rate raising" process.  Maybe if they "raise rates" again they can get the ten year yield under two percent.  Would the Fed consider that a successful exercise in "rate raising?"  Mortgage rates have plummeted.  Is that another example of a successful "rate raising" process?

You have to wonder if this is some loud joke being played on all of us.

We should close the Fed down and replace the Fed with a simple monetary rule, such as has been proposed by Stanford economist John Taylor,  With the exception of the virtuous Fed Policy led by Paul Volcker from 1989 to 1987, the Fed has either created instability or unproductive distortions in the American economy.

Andrew Jackson was right.  The US does not need a central bank.

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