Forbes: How the Fed Lost Its Cred.

By Simon Constable

The Federal Reserve bottled out Thursday when it decided not to raise the short term cost of borrowing money. It’s unfortunate, because the lack of action now removes any semblance of a fig leaf it could hide behind and still claim credibility.

“Clearly, the FED does not even think it knows what it is doing,” writes Woody Dorsey of Market Semiotics. That seems to sum it up in a nutshell. But let me breakdown some of the details of exactly  how the century old institution became a joke.

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