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Grant thinks the most recent Fed announcement is very big. He touches on:
- The Fed announcing interest rates will be near zero until 2015, which will be seven years with such low rates.
- The Fed announcing that its money printing policy is now “open-ended.”
- The Fed basically taking on the responsibility of controlling the level of employment.
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Oh come on…IMO if anyone needs any evidence that Grant has lost his balance and fallen into the toilet of partisan politics, one only needs to take note that Grant is pretending that the Fed is somehow inventing some kind of new responsibility for itself.
The original act establishing the Federal Reserve mandated that one of its objectives is to "control" (to use Grant's term of art) employment.
In part the Fed's recent action is stated to be an attempt to move employment towards "full" or "maximum" employment. I just don't believe that Grant doesn't know that "maximum employment" is one of the original objectives established for the Fed's policy. IMO Grant's credibility is approaching zero.
"The Congress established three key objectives for monetary policy—maximum employment, stable prices, and moderate long-term interest rates—in the Federal Reserve Act.[10] The first two objectives are sometimes referred to as the Federal Reserve's dual mandate."
[en.wikipedia.org]