Fed gets itself and the economy in trouble

In 2003 the Fed cut the fed funds rate to 1% and kept it there for a full year through June 2004.

Growth in the third quarter of 2003 was 7.5%, yet the Fed kept its foot on the monetary accelerator for many more months.

Fed's main obligation is price stability.

Fed gets itself and the economy in trouble when it attempts to use monetary policy to manage growth.