| This is the main problem, as I see it, with having unelected officials with unilateral power over our money, which is the very reason bitcoin was created.
To carry out their goals, it's known that the Fed has two main levers they can play with: interest rates and asset purchases. The latter lever, as we know, allows them to inject/extract money from the economy whenever they deem it necessary. The former is their way of undercutting free markets by lending money to financial institutions at minimal rates.
When this rate lever is adjusted up or down, it essentially forces other institutions to respond in kind. It might make sense that rates should be lowered when times are tough and raised when times are good. Looking at the graph below and living the times that we're in now, however, makes it seem like they are simply not in a position to adequately make these sorts of judgment calls. | 