The Fed has less power to create prosperity and growth than you’ve been led to believe.
It’s a fiction to pacify the masses.
I don’t think the Fed has power to make people rich or create prosperity, but it certainly has the power to make us poor with little hope for the futue and creating a deflationary spiral to get to it’s seemily preferred 1% target is one great way to do it. Sound public policy is only part of having a well functioning economy, sound monetary policy is the other.
I’m surprised that more people aren’t asking why it allowed inflation to go negative and NGDP to fall by 3.8% in August of 2008 instead of stabilizing to the trend, which it certianly could have done but chose not to.