Why I Hate the Fed

I have friends that tell me that the Federal Reserve was created illegally.  This argument makes me tired almost immediately, so I'll not rehash it.  I could not agree with them more, however, that the Fed is a bad thing that occasionally creates even worse things.  The idea that seven wise men could sit on their thrones and "keep the economy stable" by issuing policy pronouncements and raising or lowering the rates at which banks can borrow money from other banks is ridiculous.  It is hubris of the most destructive sort.  It is having, has had, and will continue to have grave negative consequences for the nation and indeed for the world.

You will of course assume from the above that the Fed decided to raise rates and based on yesterday's post you will also assume that they did so using language that makes it clear that they aren't finished raising them yet.  You will be absolutely correct.  The Fed said that "further tightening may be necessary", meaning, I guess, that 1.1% growth in GDP is too robust an economic picture, and that we need to get back to a recession before we do anything that might make it easier for businesses to borrow short-term money for expansion.  I also said yesterday that the Fed is not stupid.  Let me retract that.

The Chris Jones Group is not about the lowest possible rates, unless that's what you are about.  It is not about the lowest possible fees, unless that is what you are most interested in.  What we are about, whether you are or not, is trying to make the most accurate forecasts of economic conditions so that we can all prosper.  This is a difficult thing to do.  When it is made more difficult by a group of pathological buffoons who occupy unlelected and insulated positions and try to make the rest of us dance to their merry tune, then we get seriously annoyed.  Right now we are seriously annoyed.