Stocks rallied after Federal Reserve Chair Janet Yellen on Tuesday reassured Wall Street that the central bank would continue its policy of providing monetary stimulus to bolster the economy, but Jim Grant—founder and editor of Grant's Interest Rate Observer—told CNBC that her testimony before Congress was lacking.
"She neglected to tell us that the Fed is continuing on this unprecedented exercise in price control," he said on "Closing Bell." "The Fed has, in its 100-year past, manipulated interest rates before, but never until now has it treated the stock market as if it were a lever of national public policy, which it is doing. The Fed has its thumb on the scales of our finances."
(Read more: Yellen defends Fed, saying these are 'unusual times')
Though Yellen is thought to be more "plainspoken" than her predecessor, Ben Bernanke, she failed to disclose that the central bank is manipulating interest rates and the dollar outright, Grant said.