To the discredit of the WSJ they side with Fed Chair Janet Yellen who recently wrote a letter to the House of Representatives after they passed a bill calling for a mathematical rule to determine short-term interest rates.Threatening to hold peoples' feet to a flame scares everyone, but it scares government bureaucrats the most. The bill is now on its way to the Senate.
In so doing, the Journal rolled out the old, tired and tedious yarn about science versus art.The truth is, like a bunch of data whores, the Fed's been weaving its so-called art for decades pretending it was science. For anyone who's looked at their past record these past 30 or so years and believes it's anything other than dismal, we borrow a ditty from a classic Dustin Hoffman movie: "Here's to you, Mrs Robinson. Heaven holds a place for those who pray. Hey, hey!"
The only thing the Journal article gets correct is it's challenging Congress to clean up its own messes first. Now that would be a first.
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