Fed’s Lacker Slams Fed For “Inappropriate” Bond-Buying, “Distorting Markets & Undermining Independence”
by Tyler Durden
ZeroHedge.com
10/08/2014
Modern central banks enjoy extraordinary independence, typically operating free from political interference. Central bank actions that alter the allocation of credit blur those boundaries and endanger the stability the Fed was designed to ensure. Such interference in the allocation of credit is an inappropriate use of the central bank’s asset portfolio. It is not necessary for conducting monetary policy, and it involves distributional choices that should be made through the democratic process and carried out by fiscal authorities, not at the discretion of an independent central bank.
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