Is the Fed Redundant?

The marketplace seems to have predicted the FOMC's decision correctly. After all, they are privy to the same data and know the individual players' tendencies, i.e. that there is only one member (Lacker) who would vote for an increase.

Just a thought: Is the FOMC really helpful, or is it just a piece of roughage in an otherwise smoothly automated process? Oil in the gears, or just a bug in the ointment?


[Thanks to polarweasel.org for the image.]

Does the FOMC really have a positive effect on the quantity of money available? Or do they bring to the table a degree of uncertainty that keeps everyone guessing and the high rollers rolling? Do they help the economy to stabilize, or do they cause bubbles and pops, floods and draughts? Could the money market do just as well without them? Or would everything break down?

I think the jury is still out on that one; but the question does come to mind.