Disappointed that the Fed’s two year review of monetary policy led to this “fundamental” change: moving from a standing 2% inflation target to an average 2% inflation target.

Tho well-intentioned, the Fed’s new policy will just give it more reason to keep rates near zero for a very long time, pumping more cheap debt into the system, making the big bigger, the rich richer, and dragging down economic innovation and growth.

The reason the Fed has not been able to achieve consumer price inflation is because the money isn’t getting to consumers! Without changing the transmission mechanism, increased money supply will remain trapped in the either of financial markets.

If the Fed wants to help the real economy, then work with Congress for true “fundamental” reform where new money is given, not lent, to households in times of severe economic stress.

Technology provides the means to give households, directly or through intermediaries, the equivalent of their own reserve accounts at the Fed. We should use it to provide support to households, while charting a gradual path back to rate normalization.

Capital needs to cost something for a dynamic economy to work.