Guest Post: The Case For Fed Tapering Sooner Rather Than Later
by Charles Hugh-Smith
Better to engineer a mini-crisis while you’re still in control than let a crisis you can’t control run away from you. One of the most widespread misconceptions about the Federal Reserve is that its policies are based solely on economic data and models. This misconception is not accidental but the result of carefully managed public relations: The Fed fosters a public image of dispassionate experts working econometric magic that mere mortals (i.e. non-PhDs in Economics) cannot possibly understand. The reality is the Fed is as much a political and PR machine as it is a financial institution.