Jim Grant, editor of Grant’s Interest Rate Observer, has long been critical of the Fed and Fed chairman Ben Bernanke.
Grant called out Bernanke for telling George Washington University students that price controls in the 70s had destroyed the economy, but then turning around and suppressing short-term interest rates himself.
In an interview with Russia Today he said the Fed’s decision to suppress interest rates was distorting our view of the economy:
“You know interest rates are the traffic signals in a market economy, especially its financial economy. They contribute critically to our perception of value in stocks, bonds, real estate what have you. And because these rates are manipulated, specifically suppressed, crushed, we live and invest in a kind of hall of mirrors. We can’t exactly be sure that what we’re seeing is the thing itself or rather the contorted image of the thing seen through the prism of the Fed’s handiwork.”
Watch the entire interview at Capital Account: