But to be worse than a fixed monetary policy, they essentially have to be choosing worse than random, which I doubt they'll do over the long run.
I would argue that we're all collectively part of this experiment right now. We can't tell which is worse because afaik there hasn't been a competing system with a more rigid policy to compare to yet.
The Fed can't really lie about the interest rate.
Well, policy is not so much about what someone has done but more about what they will do.
Both fair points. WRT the second the issue then becomes how well people think the Fed will manage monetary policy. I would still argue "better than not being able to manage it at all", but it is a tougher argument to make.
I would argue that we're all collectively part of this experiment right now. We can't tell which is worse because afaik there hasn't been a competing system with a more rigid policy to compare to yet.
The Fed can't really lie about the interest rate.
Well, policy is not so much about what someone has done but more about what they will do.