Presidential Candidate Vivek Ramaswamy Blasts Fed Ahead Of Rate Decision: 'Disastrous 25-Year Experiment'

U.S. Presidential candidate Vivek Ramaswamy slammed the Federal Reserve ahead of its policy announcement on Wednesday, saying the central bank is the root cause of “the disaster,” referring to the ongoing banking crisis, and yet “everyone is hanging on to their words.”

"The fact that we are paying this much attention to the FOMC meeting, to the Federal Reserve at all, when in fact the Federal Reserve has actually been the source of this disaster for the last 25 years when they expanded their mandate to try to play this game of financial god — managing both inflation and unemployment, it’s like trying to hit two targets with one arrow. It has been a disastrous 25-year experiment," Ramaswamy told CNBC.

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The central bank will commence its two-day policy meeting on Tuesday and is possibly staring at a dilemma as to whether continue on its rate hike path to tame in the sticky inflation or consider pausing for the time being until more clarity emerges on the extent of the ongoing banking crisis.

The CME FedWatch Tool shows over 73% probability of a 25 bps rate hike during this policy compared to over 26% chance of status quo.

Price Action: However, markets did heave a sigh of relief on Monday following UBS Group AG's UBS rescue deal announcement of Credit Suisse Group AG CS as well as the co-ordinated action by central banks around the world to boost liquidity. The SPDR S&P 500 ETF Trust SPY closed 0.96% higher and the Invesco QQQ Trust Series 1 QQQ gained 0.35%.

Ramaswamy pointed out that market participants keenly watching out for every word spoken by Federal Reserve officials has nothing to do with their wisdom.

"What the Fed used to do in the 80s and in the early 90s was actually focussing on stabilizing the dollar. I think this is the under-discussed story in the whole thing. They are the root cause of this whole thing. Yet here we are hanging on to their words not because they have any special wisdom, remember that. It’s just a question of market participants looking at how much more damage they possibly or are actually going to do," he said.

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