Have Fed economists even read Mises and Hayek? Do they recognize malinvestment as a byproduct of interest-rate setting? Do they know anything about their own institutional history, or at least enough to recognize how mission creep has turned the Fed into a central planning Politburo? And how will Janet Yellen deal with the inherent tension between raising interest rates and keeping the cost of US debt service in check?
Note: The views expressed on Mises.org are not necessarily those of the Mises Institute.
Danielle DiMartino Booth is the founder of Money Strong, LLC, an economic consulting firm. DiMartino Booth spent nine years as an adviser to Richard Fisher at the Federal Reserve Bank of Dallas. She is author of Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America. Her website is DiMartinoBooth.com.