Jim Grant: The Federal Reserve's Massive Experiment In Price Control Will Turn Out Badly (CNBC Video) $SPX

Source: CNBC.com
Jim Grant, founder and editor of Grant's Interest Rate Observer, told CNBC's Rick Santelli on 1/29/2014 that he thinks the Federal Reserve's "massive experiment in price control" will turn out "badly." Here's more of what he said:
It strikes me Rick that the Fed in substance, if not in name, is engaged in a massive experiment in price control. They don't call it that, but they fix the funds rate, they manipulate the yield curve, they, through this two dollar phrase called the portfolio balance channel, talk up the stock market. They have their fingers, their thumbs on the scale of finance. To change the metaphor, we all live to a degree in kind of a valuation hall of mirrors. Who knows what value is when the Fed fixes the determining interest rate at zero. I said experiment in price control, but there is no really suspense about how price control turns out. It turns out invariably badly.

Source: CNBC.com

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