Fmr. SEC Chair Pitt Rips Fed Over Economy

Former SEC chairman Harvey Pitt, during an interview on Cavuto: Coast to Coast,  said the Federal Reserve has become increasingly dependent on the Obama Administration in regards to policy setting.

“They are part of the administration’s policy apparatus which was never the role the Fed was intended to perform. The Fed was always supposed to be an independent setter of monetary policy,” he said,

Pitt criticized the Fed for not putting the economy back on track, especially when it comes to their reluctance to raising rates.

“This is going to produce a very dramatic and adverse market reaction when they finally get around to allowing rates to rise. I think what we’ve seen right now has been very artificial and instead of letting the economy function they are basically fueling short termism and keeping people focused on day in and day out events as opposed to the longer term. All of which bodes poorly for the stock market coming down the road,” he said.