Fed exacerbating stagflation risk: Meltzer

The Federal Reserve's current policies mark a return to the dark days of the 1970s and carry the same threats, says Allan Meltzer, a professor at Carnegie Mellon University.

Meltzer writes in the Wall Street Journal, a newspaper, that recent actions mirror the Fed's behaviour three decades ago and reveal the institution as "a handmaiden beholden to political and market players".

"In the 1970s and again now, Federal Reserve officials repeatedly promised themselves and each other that they woul