“Fortunately, the people who manage interest rates are smart enough to ignore these folks.”
What do you think the price of money is? It is called “interest rates”. Interest rates should be set by the free market, as they were before the Fed.
In addition to its central planning gig, the fed’s other main job is to “sell” the $US by understating inflation. Core or Headline, it doesn’t matter, the published inflation rates are far below reality.
Yeah, just look at all that price stability we had under the gold standard. The Fed has done a pretty good job managing monetary policy through interest rates since 1982. That stability has helped create the environment for capital formation and innovation that has made our economy and net worth dramatically increase since.
In addition to its central planning gig, the feds other main job is to sell the $US by understating inflation. Core or Headline, it doesnt matter, the published inflation rates are far below reality.
Is that why our the 10-year T-bill is yielding just 5%? Because inflation is so much higher than what's being reported? All those people who make money buying and selling bonds, who have access to so much information, are all, in reality, losing huge amounts of money because they don't know what the real rate of inflation is? But you do? Sorry. That horse doesn't ride.
Interest rates are still set by the market.