"The Fed's Obama-Era Hangover" Article Published in the Wall Street Journal

Jan 02, 2019
Summary: The Federal Reserve’s latest moves to raise its target interest rates for the fourth time in 2018 have captured news cycle headlines for the last month. But the importance of the Fed in market interest rates is at its lowest level in any time in its 105 year history. In fact, the Fed’s bloated asset holdings and resulting excess reserves have made the Fed a victim rather than a maker of market interest rates.  
In a new article published in the Wall Street Journal, Dr. Thomas R. Saving, PERC’s director emeritus, and co-author Dr. Phil Gramm discuss the Fed’s response to the economy’s slow recovery during the Obama era and what it must do to bring its balance sheet back down, without causing the money supply and inflation to spin out of control.
Dr. Thomas R. Saving is the Director Emeritus at the Private Enterprise Research Center at Texas A&M University. Dr. Saving was previously appointed Public Trustee of the Social Security and Medicare Trust Funds under President Clinton and as a member of President Bush’s bipartisan Commission to Strengthen Social Security. His latest book, ‘A Century of Federal Reserve Monetary Policy: Issues and Implications for the Future,’ is in press from World Scientific Publishing.
This article was originally published by the Wall Street Journal on Tuesday, January 1, 2019. Click here for the full article [paywall].