The Real Fed Danger That No One Is Talking About

It seems new Fed head Kevin Warsh stepped in it last week, with headlines globally bemoaning his lack of monetary policy “forward guidance” and decision to answer reporters’ questions with word salad. Never mind that this simply reverts to the late Alan Greenspan’s playbook—headlines’ judgment was harsh, claiming the ensuing market volatility meant he messed up bigtime. We take a different view. We did spot an error, but it isn’t the one getting all the ink. Read Full Article »