Karl Smith takes a switch to Mohamed El-Erian

and a two-by-four to the Fed:

Central Banks don't have direct control of wars but they do control recessions. Thus its natural to think that the goal of central banking is to produce growth, prosperity and financial health.

However, on a basic level its not. If the economy is running at maximum employment and the prices are moving in a steady and predictable fashion then the central bank has done its job. What happens to growth is ultimately not the Fed's concern.

Consequently, when folks like myself point out the ongoing abject policy failure of the Federal Reserve and the absolute nightmare that is the ECB, our complaint is not about growth, it is about employment.

Read the whole thing here.

I'm wondering if Smith feels that a flattening of the curve towards short term rates is what the Fed should be shooting for. It's not all in their control.