Head of San Francisco Fed Bank: We Don't Know What We're Doing, So We'll Do More of It

"The head of the Fed bank in San Francisco, Janet Yellen, has more or less admitted that the Fed has no idea what it is doing, but that such ignorance only argues for taking more aggressively action:

Yellen said that the wisdom of the Fed's approach is now the subject of "considerable debate." ...

Yellen admitted that it was hard to prove that the new programs were working.

"We simply don't have the experience needed to pin down the magnitude of the impacts," Yellen said.

But this was just another argument in favor of a broad, aggressive, approach, she said."

Washington's Blog