Why the Fed is losing credibility

They lost it a long, long time ago.

Also, our Net Worth as a country is something like 70 to 80 trillion, which some of the conspiracy theorists have attempted to say is used up by unfunded obligations......which they never bother to write down or sum up on paper to demonstrate where that amount of valuation is used up. Further our National Debt is double counted in a way. True it is an obligation to be paid but most of it are bonds sold to the Social Security system. Our current Social Security shortfall will decrease once interest rates rise and the bonds sold to the Social Security system start to earn decent interest rates. However our indebtness will worsen as the interest paid on the National debt also increases. So as a whole I am not as worried about the solvency of the Social Security system. More so worried about our National Debt.

The Fed is structured deliberately to remove politics from monetary policy. Which is more of a good thing than negative thing. Throughout our financial system we have protections in place that may seem unfair or bureaucratic but actually prevent financial abuse and fraud. For example when you pass on, all the assets in your name are immediately frozen by the state until your will (if any) makes it through probate. Even your wife as the surviving relative cannot touch the assets (unless the accounts are joint or in a trust). That rule allows the state to intervene and inspect the financial arrangements you setup and ensure your wishes are followed (if you have a will). Even if you have a will the assets are still frozen for a short period of time until the validity of the will can be determined. It's one reason why folks have life insurance to fill in for that liquidity gap OR put their assets in a living trust arrangement.

The fed is a clearing house which has no real assets except for the computers they use to "create" money and the IOUs held in loo of loans they give to the US Government, i.e. We the People. We the people are on the hook for those fiat currency loans and I can guarantee that the majority of us disapprove of the way they spend. Which is why the peoples' and the states' representatives, Congress, was given that authority.

Do you see any amendments to the US Constitution taking that enumerated power from the congress? When the US Treasury pays the debt on those "fed" IOU's it's the buying power of the US Citizen that is removed from the economy. I would suggest looking up Fractional Reserve Banking and reading the history of fiat currencies as well as the Creature from Jekyll Island by G. Edward Griffin.