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Fed has abandoned monetary policy, critic says
- Tangurena 18y agoI wouldn't say that they've abandoned monetary policy, it is that their primary tool in the past has been manipulating interest rates. Now that interest rates are effectively zero, they've painted themselves into a corner. Their only other significant tool, loaning money to "member banks" isn't useful because the funds needed to keep the banking industry afloat need to be largely astonishing numbers. I contend that the $700B bailout is just the beginning, and the final butcher's bill will end up being closer to $5T.