The Fed's Pro-Cyclic Approach to Inflation

The Fed does not know how to measure money supply and they don't know what interest rates are really supposed to be. They put so much emphasis on the CPI or the unemployment rate because they're trying to make a couple of huge assumptions which is that if we rig trigger the interest rates around a certain way then we'll assume it's doing something right. By the time they actually react it's way too late final and I can't believe they're stupid," he said.