Here's a great article on how the Fed is hurting the economy from a fellow over at PowerWealth.com called Let's Be Frank, Barney: The Federal Reserve Hurts We The People.
America’s economic problems are not due to market forces, laissez faire economic policies, or clever financial engineering. The pathogen that most afflicts the U.S. economy today is the Federal Reserve, which engages unwarrantably in the central planning of U.S. economic growth. By creating artificial growth instead of vigilantly protecting We the People from the ravages of inflation, the Federal Reserve engorges the U.S. money supply with a debased currency backed by nothing more substantive than the “full faith and credit” of a bloated U.S. federal government beholden to foreign lenders to pay its bills.I agree. If the Fed would just stick to Milton Friedman's easy rule (adjust the money supply to grow a fixed percentage per year, enough to grow the economy but not enough to turn on inflation), we'd all be better off.
In the short-run, the Fed can do a lot. However, it's often at the expense of long-term growth. We haven't had any substantive growth for quite some time (the 60s?)...
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