“The Fed is in the business of trying to manipulate markets, the macro economy, interest rates, unemployment and inflation through various monetary means, including the twisting around of yield curves and interest rates,” Grant said.
Grant added, “The Federal Reserve fixes rates on principle. They have ‘operation twist’ that manipulates the credit markets. They have quantitative easing that manipulates bond yields.”
Grant said “the idea that the banks are in charge of manipulating interest rates is absurd. The central banks do it all the time and they do it massively.”
The Libor scandal might get bigger, Grant conceded, but outrage should be directed at the world’s central banks, he said.
