RE: Federal Reserve Musings - The American Spectator | USA News and Politics
RE: Federal Reserve Musings
by

The problem is that you are assuming that the Fed can send these signals perfectly, that people will generally respond in the correct way to these signals, and that these moves will have little or no impact independent of their psychological impact. The problem usually isn’t that people assume that the Fed is trying to hamper economic growth or permit inflation — they just think those might be the actual consequences of the Fed’s actions.

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