With central banking, countries can be destabilized in multiple ways. One way, central banks can wreak havoc is through their manipulation of interest rates. The results of letting the Fed determine interest rate policies can actually be quite devastating.
Interest rates function like normal prices on the market. When interest rates are distorted by external interventions, they generate a significant misallocation of resources throughout the economy. This is how the classic boom-and-bust cycle arises.
These are the many pitfalls of having non-market actors dictate how interest rates are set. Furthermore, it’s another reason why people should be more skeptical of central banking and support measures to weaken the Fed and ultimately allow for competing currencies to emerge to challenge the current fiat standard.
Having a central bank micromanaging the economy is simply too much of a risk for Americans to endure at this moment. It’s time that we end the Fed.