The View From 1776
Monday, March 26, 2012
Case Study: Misbegotten Federal Intervention
The Fed’s near-zero short-term interest rate policy distorts the market, with many ill effects and none of its proclaimed benefits.
In a speech today before the spring conference of the National Association for Business Economics, Federal Reserve Commissar Ben Bernanke, now an Obama re-election campaign mouthpiece, reaffirmed the Fed’s intention to continue imposing artificially low interest rates for short-term Treasury securities. According to the Washington Post’s report, he admitted that the economy and employment remain weak. But, he maintains, “the Federal Reserve