Fed policy is now officially to sell and purchase bonds as needed without all of the fuss and debate. Ben does it like a superhero to save as many jobs as he can. But one thing is clear. The methodology is open-ended so no more distractions about shutting it down. The printing press? Shut it down... Really?
Core Inflation data is at the crux of current FED policy. Food and energy does not weigh in the examination for inflation in the consumer price index. This disregard for mandatory expenses by the citizens is misleading if not unfair. To use the premise that a low inflationary rate is accommodating to infusing liquidity into the economy is an extra punch in the gut, for what it really costs to live in America.
The only true primer for a free market is excess cash flow created from the private sector. The FED is equally responsible for that impasse, as is Congress and current law designed to restrict private enterprise. One cannot get out of the way of the other. The government and FED policy is demanding more from the citizens in contributions, yet our opportunities in the free market are dwindling.
Corporate America is hunkered down into a productivity challenge of squeezing manpower to offset shrinking profits. Risk capital is now "calculated" capital and that strategy will not change in our current low interest rate, low-growth environment.
The Fed's flow-chart for success is not dissecting commerce as a positive example. The Fed has lost its way and consumes itself with treasuries, and a process to synthetically infuse capital to preferred customers. We need a Fed to recognize that losses on a balance sheet are required when assets fall in price. And that markets will determine supply and demand with healthy working capital supported by a strong U.S. Dollar.
The objective of the Fed should be maintaining a floating interest rate policy that bobs and weaves with current trailing data and forecasts. Pegging interest rates to zero is a big part of the problem. We need a full-hour cable intervention at the Fed. Admitting the problem would be a start.