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Milton Friedman on Monetary policy and the Federal Reserve

More frequently, they have moved in the right direction, albeit often too late, but have erred by moving too far. Too late and too much has been the general practice.
The Role of Monetary Policy
Journal article, 1968, American Economic Review 58, no. 1 (March 1968), pp. 1–17; reprinted in the House Banking and Currency Committee’s 1968 Compendium on Monetary Policy Guidelines and Federal Reserve Structure, pp. 214–224, p. 223 of the 1968 House reprint
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  1. In two earlier columns on monetary policy, I was highly critical of the Federal Reserve System for acting too late and then, when it did act, for overreacting. This time, I come to praise, not to criticize. Since November 1967, the Fed has moved not only in the right direction but also by about the right amount.
    Monetary Policy
    Column, 1968, Newsweek (June 3, 1968); reprinted in the House Banking and Currency Committee’s 1968 Compendium on Monetary Policy Guidelines and Federal Reserve Structure, pp. 225–226, p. 225 of the 1968 House reprint
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  2. At any rate, simple slogans like “The market will take care of it” or “noninterventionism” do not resolve the hard problems. We may very well agree on the direction we want to go in, but just how we’re going to go there and how far we’re going to go, that’s a much more difficult problem.
    Say 'No' to Intolerance
    Speech, 1991, Liberty, vol. 4, no. 6 (July 1991), p. 20
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  3. Well, I have always argued that you will not solve problems by electing the right man to the White House. Certainly not by electing the wrong man. … The only way you will ever solve problems, in my opinion, and move in the direction we want to move is by making it in the political interest of the wrong people to do the right thing.
    The Open Mind
    Interview, 1977, The Open Mind, hosted by Richard Heffner, Episode “A Nobel Laureate on the American Economy” (May 3, 1977)
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