The FED needs a new Mandate
The CNBC talking heads today were discussing whether the FED needs to maintain an emphasis on promoting RISK ASSETS? How crazy can things become? Where do they think volatility is born?
I would suggest that the FED follow a Balanced Mandate, maybe a minimum interest rate of 1.5 percent except for emergencies where they could go down to 0.0 percent for up to one year. The balance comes in from the standpoint that there are more than borrowers in this economy, remember savers.
Obviously something like this would take Washington action and we all know how that works, no one has guts enough to call a spade a spade, other than the wild man, Trump, and maybe Elizabeth Warren.