From Policy to Pain: How the Fed Impacts Your Wallet
By Gryffindor (Wikimedia Commons)
Artificial interest rate controls cause inflationary booms, depressing busts, and result in taxpayers bailing out wealthy bankers every five to ten years.
While businesses struggle to obtain loans and consumers suffer under extremely high interest rates, the Federal Reserve cautioned this week “against cutting US interest rates too soon or too much.”
The implication is that the Federal Reserve knows what the correct interest rate should be and when and by how much it should be cut. But for every other product, apart from loans, the market determines the price. And the market is never wrong.
The Fed deciding that it knows the right interest rates and quantity of dollars that the economy should have is extremely presumptuous.
