Thursday, September 17, 2015
Check out this quote from Daniel Henninger in today's WSJ:
"Not least, the future of the slow-growth, anxiety-producing American economy is in the hands of one nice lady named Janet Yellen, who presides over what is literally a central-bank black box. Crazy."
People this is indeed crazy. Also ridiculous, untrue, ignorant, etc.
Repeat after me, the FED does NOT control the real growth rate of economy!
(In fact it barely influences it).
Then as a corollary try this, The FED chair is NOT the dictator of the FED and the FED is NOT independent of politics.
There is a boatload of academic research supporting all three of these points.
But America is gripped by this weird cult of personality view of economic events. The Volcker recession, Alan Greenspan; The Maestro, the Greenspan (and Bernanke) put.
The FED chair is NOT steering the American Economy.