The Impotence of Monetary Policy and the Federal Reserve
By Bruce Johnson
The job of central bankers is to prevent free-market forces from impacting an economic situation.
Monetary policy apparently cannot halt a previously declining manufacturing sector.
The Federal Reserve's record level of accommodations hasn't helped. Any benefits of those moves have been scooped up by the federal government via reduced borrowing costs. When the Fed steps into the weekly Treasury auctions and buys those Treasury obligations, it is merely lending new money to the federal government.
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