WASHINGTON, D.C. — In response to the Federal Reserve Board’s decision to cut interest rates close to zero, John Tamny, FreedomWorks Foundation’s Director of the Center for Economic Freedom (CEF), commented:
“Seemingly lost on the Federal Reserve is that individuals and businesses borrow money for the resources money can be exchanged for. This statement of the obvious explains rather easily why the Fed’s panicked reversion to zero will be utterly meaningless.
“With economies around the world increasingly locked down, production is set to decrease, and with the downdraft, fewer resources will be produced. The Fed can’t alter this reality, anymore than New York City’s Mayor de Blasio can decree expensive apartments cheap. It seems central bankers are joined by young children in their naive belief that artificial price controls result in cheap abundance.”