The Fed Is Anything but Crazy
President Trump’s ranting aside, the central bank isn’t tight, and steady rate increases are prudent.
When comedian Steve Martin spoke about “wild and crazy guys,” I’m pretty sure he was not referring to members of the Federal Open Market Committee. In fact, no one—to my knowledge—has ever called FOMC members “wild” or “crazy.” Until now. On Oct. 10 President Trump announced, “I think the Fed has gone crazy.”
The president’s rant was based on his belief that “the Fed is making a mistake. They are so tight.” Of course the Federal Reserve makes mistakes. What institution doesn’t? Maybe it is making one now, though I don’t think...