The Fed "Losing Credibility" as It Becomes "an Arm of the Administration"Submitted by bobbyw24 on Tue, 11/16/2010 - 07:33
As Congress begins its lame-duck session this week, Republican lawmakers and conservative economists are following in the footsteps of Sarah Palin, penning an open letter to the Fed that calls on the central bank to drop its plan to buy an additional $600 billion in U.S. Treasuries.
"The planned asset purchases risk currency debasement and inflation, and we do not think they will achieve the Fed's objective of promoting employment," the letter says, according to today’s Wall Street Journal.
They’re half right, says economist Gary Shilling, president of A. Gary Shilling & Co.
“I don’t think it makes a lot of difference,” he says in the accompanying clip.