Credibility crisis at the Fed ain't inflation

Fed officials tell us to fear inflation expectations becoming "unanchored." That's not the threat to the Fed's credibility. It's unethical individuals calling the shots.

I am disgusted with Fed officials and the institution. It’s not about the policy direction. I am humble enough to know what I don’t know now about the best path forward. Even so, I was raised well enough to know that the Fed—after five ethics problems within a year—is rotten to the core.

Here’s my Bloomberg interview yesterday on the latest one.

I am crushed, and I am done.

I know Jim. I respected him until Thursday when Jeanna Smialek at the New York Times broke the story. Up until the Board did not comment, I respected Jay. No more.