from investors.com
….The recent FOMC majority decision to keep interest rates near zero until at least mid-2013 will extend the Fed's easy monetary policy to cover a period of more than five years.
The duration and degree of monetary easing is unprecedented in the history of the U.S.
And in doing this, the Fed is underestimating the risk of higher inflation and overestimating its ability to bring the economy out of recession.
The majority view on the FOMC is flawed and carries serious downside risks to the economy. Monetary policy did not bring prosperity from the Great Depression, it did not undo the stagflation of the 1970s, it did not undo the lost decade in Japan and it will not likely create jobs now.
The Fed can — and should — conduct policy to promote financial stability, inhibit excessive risk-taking and foster low inflation.
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