[flight2q]

The Fed's ability to adjust money supply in response to economic conditions is much better than following some arbitrary rule (such as maintaining the dollar's exchange rate against major currencies we trade with, or heaven forbid against a basket of commodities).

The Fed seems to have done a competent job in managing interest rates post-Volcker, and a very good job of regulating banks after the initial blowout of the Reagan deregulation. They are also collecting and disseminating a lot of excellent economic information.