by Ron Ross
American Thinker
The Federal Reserve Board (the “Fed”) seldom does anything newsworthy, but recently it did just that.
It lowered its “target range” for something known as “the federal funds rate” by one half of one percent to 4.75-5.00 percent, its first cut in the target range in four years. Should you be happy or sad?
The answer is, neither. It would be hard to imagine anything more irrelevant or disconnected from the rest of the economy than changes in the federal funds target range.
There are countless economic myths but perhaps the most puzzling of them all is that the Federal Reserve Board has the power to control interest rate levels. That may also be the most widely believed economic myth.