Note from the Editor: The Federalist Society takes no positions on particular legal and public policy matters. Any expressions of opinion are those of the author. We welcome responses to the views presented here. To join the debate, please email us at info@fedsoc.org.
Alex Pollock, a resident fellow at the American Enterprise Institute and a former banker, demonstrates, as the headline of his article states, the Federal Reserve's monetary policy decisions "really just come down to guessing." As Alex explains, Fed officials are no more clairvoyant (my term) than other knowledgeable participants in the financial markets. However, because Fed officials act as if they can predict the future, the Federal Reserve has become a very dangerous financial institution and worse, one almost entirely exempt from political accountability.
