"The [Fed] is scrambling to convince the public that it is not a secretive institution that acts at the behest of Wall Street, but the public isn't buying the Fed's line. ... The Obama Administration has proposed rewarding the Fed for its failures by crowning it the nation's systemic regulator--a sort of financial regulatory czar. But many in Congress demand a closer peek inside the central bank. ... Milton Friedman weighted in on central bank independence in a 1962 essay, 'Should There Be an Independent Monetary Authority?' Friedman's conclusion: 'The case against a fully independent central bank is strong indeed.' ... As [Alan Meltzer] author of the authoritative History of the Federal Reserve, he has observed that the Fed responds 'decisively to the unemployment rate but not to the inflation rate'," Steve Hanke at Forbes, 7 September 2009.
The Fed will continue "inflation targeting" whatever that is as inflation rises.
1 comment:
Will Chairman Bernanke be leashed to the monster inflation rather than him magically inflating and reflating the economy?
Yes... I think the Chairman and all of us will soon be tossed to and fro by the massive liquidity he has injected...
Post a Comment