Does anyone know why Jim Grant is out and about calling expansionary Fed policy “price controls”? Do I just not know what price controls are?
Attacks on the Fed for its having the gall to follow the tenets of basic monetary policy – low rates during a time of high unemployment and weak demand – are to be expected from Rand Paul’s putative favorite for Fed chairman. (A bit like W.’s pick for the U.N., isn’t that?) But the use of the term “price controls” in this circumstance is just baffling to me.
I agree, though, that the Fed will remain patient on interest rates, for two reasons. One, there are still plenty of threats to our nascent recovery. And two, Janet Yellen don’t take no s**t from nobody.