The Federal Reserve's stimulus policies should have gone by a different, more controversial name, the founder and editor of Grant's Interest Rate Observer told CNBC on Wednesday.
Quantitative easing seems more like price control, said Jim Grant, who writes a twice-monthly journal that covers U.S. financial markets. And past attempts at artificially keeping prices low have ended badly, Grant told CNBC.
"It strikes me that the Fed in substance, if not in name, is engaged in a massive experiment in price control," Grant said. "They don't call it that. They fix the funds rate. They manipulate the yield curve. … I said 'experiment in,' but there is no really suspense about how price control turns out. It turns out invariably badly."
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Grant's comments came as Fed chairman Ben Bernanke over presided over his final meeting before handing off control of the central bank to Janet Yellen. The Fed decided Wednesday to continue its taper of monthly asset purchases by another $10 billion. Bernanke's attempts to salvage the country's financial system in 2008 during the worst economic crisis since the Great Depression have been cast in a more favorable light after the U.S stock market saw record gains in 2013.