…has been exposed by the Federal Reserve Bank of Richmond President. In a Wall Street Journal piece about the Federal Reserve Bank and the PRC/US trade war, Tom Barkin said this about the Fed’s purpose, and he was serious:
Confidence, especially business confidence, is fragile. It’s our job as policy makers to try to support it.
Um, no. The only policy the Fed should be making is in satisfaction of its mandate: to maintain stable pricing and full employment. Full stop.
The Fed has no business interfering with/influencing businesses—and no need: confidence will come from those stable prices and full employment.
It’s too bad that the Fed so badly misunderstands its role.