mises.org / October 22, 2016
As the 2016 election draws near, the elephant in the room — whether the candidates and the public know it or not — remains the central bank and its continued power over both the domestic and global economy. There is good reason to believe, of course, that the Fed is actively crafting policy to avoid any economic crises before the election, in order to benefit the Clinton campaign. But, the evidence continues to mount that the Fed simply won’t succeed in its efforts to forever steer the economy with a team of technocratic elites. The Fed, for example, doesn’t understand how interest rates are truly formed in the marketplace, nor can it square the real long-term effects of inflation with its irrational fear of deflation. Worst of all, as central bankers continue with their public-relations tours, they drape themselves in the mantle of freedom and free markets.