Fear the Fed – Bill Kristol
A businessman and investor for whose judgment I have the highest regard sends this email about yesterday’s Fed announcement:
“It is impossible to overstate the danger posed to the long-term stability of our country by current Fed policy, which has reached what one can only hope is the apogee of misplaced confidence in their ability to fine-tune the world. Fed policy, consisting of ZIRP (zero percent interest rates, which are now promised to be maintained for at least the next two years) and gigantic purchases of medium and long-term bonds (so-called QE, or quantitative easing), is unprecedented in monetary history.
“Despite the marked lack of success of such policies in generating growth and employment gains, despite having being followed for almost three years (although they claim success because the economy did not collapse, and because there is a purported ‘profit,’ despite the profit have come from ZIRP as well as the fact that their buying of $2.6 trillion of bonds has driven up the prices of the debt!!), the Fed is now powering ahead with more of the same.
Read More at The Weekly Standard.