This Fed worries too much about inflation

Think this Fed is 'easy money' -- ask Larry Meyer, former Fed governor:

“The markets may have pushed the FOMC into a cut in October, but we think the message is: ‘Push us once, you win. Push us twice, you pay!’ This is one of the most hawkish Committees that I can recall … Put it this way: I would be the dove on this committee today, and I don’t usually do even a good imitation of a dove.”

Inflation, while a key macro measure of the health and stability of any economy, I fear, is uncontrollable right now. Soaring demand for oil has provided a continuous and crushing blow to this economy and all other economies that rely on fossil fuels.

There really is no way to contain it. Raising short-term rates won't do anything but throw us, and perhaps the world economy, into a tailspin that could last years. All it will do is slow growth, maybe even cause a deep recession (some would call it a depression, but those are scary words).

Economics Blog : Larry Meyer: I’d Be a Dove on This Fed