Fed’s Inflationary Easy-Money Policy Hammered

In a blistering attack, the Wall Street Journal today criticized the Federal Reserve’s inflationary easy-money policy, which aims to bail out mortgage borrowers through low interest rates, but caused the dollar to collapse in value against foreign currencies: “The dollar plunge has translated into a net transfer of trillions in wealth from the U.S. to the rest of the world. The result has been the largest decline in America’s global economic influence since the 1970s.”  The Fed’s policy has also been condemned by international investors and economists, like investment bank Julius Baer, which criticized the Fed for spawning an “Age of Decadence,” “by allowing asset bubbles to form unfettered; by maintaining ultra-lax monetary policies; . . . and, by succumbing easily to the faintest political pressure.”