JIM GRANT: If Ron Paul Were President And I Were Fed Chairman....

Jim Grant, of Grant’s Interest Rate Observer guest hosted CNBC’s Squawk Box this morning. Grant is a well known critic of the current path of monetary policy. 

With a policy decision coming from the Fed tomorrow, Grant mentioned that he was Ron Paul’s choice for Fed Chairman, and described what he would do if he had the job:

“My first order of business as Fed Chairman, if it happened this morning, would be to open the office of unintended consequences. That’s my first job. This office would issue reports periodically about what the Fed means to do, and what it’s likely to achieve, and these are utterly different things. So the Fed, by implementing quantitative easing, which is the fancy way of saying creating currency where none existed before by a tap of on a computer keyboard, quantitative easing is meant to revive animal spirits in the economy. What it often does is to inflate the wrong prices, make Greenwich even richer, and set us back on the progress of adjusting from the last bout of bad monetary policy.”

Grant expects some expansion of the Fed’s balance sheet as it has shrunk in recent weeks.

Here’s the full segment from CNBC:

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