Source: Independent Institute
by Alexander William Salter
“Markets want predictable interest rates. However, that isn’t the Fed’s job. Officially, the Fed has a three-part mandate: full employment, price stability, and moderate interest rates. An unspoken agreement between politicians and central bankers has made this a de facto dual mandate focusing on labor markets and price levels. Managing the money supply addresses both concerns. We need to change how we think about monetary policy, however, or else we’re setting ourselves up to get repeatedly fooled. Adjusting interest rate targets is a means to an end. The interest rate is not the price of money, but rather the price of time. When you borrow, you’re renting capital. Interest rates reflect the value we place on having capital right now, as opposed to later.” (12/05/25)
https://www.independent.org/article/2025/12/05/its-time-to-demystify-the-central-bank/