This is an uncharacteristically useless column by Sowell. Of course the Fed is bad at economic forecasting. So is everyone else. Forecasts must be made and action must be taken. A useful criticism would have done two things: (1) explained how he would improve economic forecasting and (2) explained what system of monetary control he would use instead of a central bank.
Now that the federal government is playing an ever larger role in the economy, a look at Washington's track record seems to be long overdue.
The recent release of the Federal Reserve Board's transcripts of its deliberations back in 2007 shows that their economic prophecies were way off. How much faith should we put in their prophecies today -- or the policies based on those prophecies?
Even after the housing market began its collapse in 2006, Federal Reserve Chairman Ben Bernanke said in 2007, "The impact on the broader economy and financial markets of the problems in the subprime market seems likely to...
And they ALL blame the Fed.
2) Put the U.S. back on the gold standard.