Danielle DiMartino Booth is a vocal critic of the Federal Reserve. The former analyst at the Federal Reserve Bank of Dallas condemns the devotion of the unelected academics to their theoretical models. In her book «Fed Up» she writes about arrogance and tunnel vision that drive core policies of the Fed and explains why the central bank is bad for America.
Ms. DiMartino Booth, why is the Federal Reserve bad for America?
Because of its intellectual dishonesty. The Fed noticed around 2009 that if they had had a more reliable and realistic inflation gauge on which to set policy, they would have seen the crisis coming. But despite that recognition, they chose to do nothing about it.
Are there more realistic inflation gauges?
Several Federal Reserve Districts have come up with alternative gauges. The underlying inflation gauge from the New York Fed for example also includes asset price inflation. And it runs about one percentage point...