No, The Fed Isn't Fumbling The Ball

I rarely take the time to respond with a letter to the editor, but Robert Kutt-ner's article "Wanted: A Fed that doesn't jump when inflation says 'boo'" (Economic Viewpoint, Mar. 14) is so flawed I feel I have no choice.

The Federal Reserve Board over the past 14 years has done a marvelous job of wringing inflation out of the economy, with no cooperation from a spendthrift U.S. Congress. Just because the inflation figures currently look tame, it is no time for the Federal Reserve to relax its guard.

I would suggest that if Kuttner would like to see faster economic growth, the answer is lower taxes and fewer government regulations that punish individual initiative.

Marc A. Ferries

Salem, Ore.

Both Robert Kuttner's article and "A full head of steam is choking the bond market" (Business Outlook, Mar. 14) have brought the fine art of Fed-bashing to an abject level. Using current inflation rates as evidence of continued lower inflation, both articles bash the Federal Reserve for the last rate increase. Using current inflation figures as an indicator for future inflation rates is simply a dangerous assumption. To add insult to injury, your writers imply that the Fed is as myopic as the rest of the financial world, which is prone to overreact to good news as well as bad news. Has anyone had the audacity to look at the current growth rate of the money supply or the effects of the Clinton budget package?

Patrick D. Kjellberg

Richmond, Va.

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