Does the US need a central bank (the FED)

[morganist]

It's "a" recognized process, not "the" recognized process. This distinction is important.

True but it is the technique they will choose to use if they want to increase the monetary base.

 

[piezoe]

They use the interest rate to hit the interest rate target

 

[morganist]

Yes they use the interest rate to hit the interest target that is true too. But it is not what I meant. I meant they use the interest rate to hit the inflation target. Both statements are true.

 

[morganist]

To answer the Original Poster's question does the US need the FED. In regards to controlling the economy there is a new macroeconomic model using pension saving which seems to be better at achieving the desired economic targets.