Fed Skeptics' Latest Bugaboo: 'Instability'

After four years of being wrong, you might think the "inflation-is-nigh" crowd would be a little out of breath and much embarrassed. No, they've just moved on, notes the Atlantic's Matt O'Brien, to another phantom menace: financial stability.

"The Fed should start tapering this summer before financial market distortions become even more damaging," wrote economist Martin Feldstein. "Central banks cannot do more without compounding the risks they have already created," said Stephen Cecchetti, an economist at the Bank for International Settlements. Other fearmongers include Fed governors Jeffrey Lacker and Jeremy Stein.