Being neither a player nor very knowledgable about all this, which of course entitles me to lots of opinions
, it always has seemed to me that the Fed became an instrument of a policy that took root in the late 1950's. Roughly that policy was to create world domination through the economic machine of the US as well as its military.
That policy would have as its focus economic expansion and bigger markets. Key to this is the expansion of credit. A sound policy would be committed to stability with modest growth gauged by the welfare of the American people. It would not be keyed to corporate profits nor the stock market.
It has long been a tenet of those who advocate for less government intervention that corporate profits and the stock market should be left to their self regulation. This became the dominant philosophy once again during the 1950's and what we are experience today is akin to an overgrown anaconda thrashing around when it bites of too much prey.
