Jim Grant Offers Advice to the Fed: Do Less! (Video)

Jim Grant appeared on Bloomberg and offered some advice to the Fed when prompted by the hosts.

Do less!

I think they should do less of almost everything they now do. They pretend to things they can’t know, and they undertake actions that are mainly unhelpful.”

Grant went on to explain why interventions into economies by central bankers ultimately fail. He also agreed with Peter Schiff, saying that the Federal Reserve has painted itself into a corner. It wants to raise rates, but it can’t because the economy is bad and getting worse. Grant closes out the discussion by pointing out the absurdity of “data dependence.”

Highlights from the interview:

“I think they should do less of almost everything they now do. They pretend to things they can’t know, and they undertake actions that are mainly unhelpful.”

“The Fed seems to conceive its principle work to be suppressing or distorting the free play of prices. Interest rates are prices, and one thing that we mostly can agree on is over the course of millenia, price control has shown to be an unwise public policy.”

“I think the Fed has missed its market. It had six, seven years in which to orchestrate a return to something like normal interest rates, and now the Atlanta Fed is showing contemperaneous GDP reckoning – that the GDP is scarcely growing.”

“The Fed is now confronted with the possibility of moving to restore something like a normal structure of interest rates at a moment in which the economy is perilously close to contracting.”

“What the Fed ought to do is less, meaning it ought to intervene less. It ought to get out of the way of the asset markets. It ought not try to institute inflation at the rate of 2%.”

“The Fed chases these data. It is data dependent. The data are not what they are represented to be. They are prone to revision. They are first guesses. They are backward looking.”

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