Congress can restore the integrity of the dollar

Contact Your Elected Officials
The Hill Header

All government agencies try to maximize power and minimize accountability, but the Federal Reserve is in a league of its own. What began as a quasi-public clearinghouse with the limited function of stopping bank runs has evolved into a monetary-regulatory behemoth. Its sphere of influence has grown despite its failures, of which 40-year-high inflation is the most recent but by no means the worst.

Constitutionally, the Fed answers to Congress. Itโ€™s time for legislators to take back the reins. Three bills recently filed by congressional Republicans โ€“ the Gold Reserve Transparency Act of 2021, the Price Stability Act of 2022 and a yet-to-be titled act, H.R. 9157, linking the dollar to gold โ€“ can bring the Fed to heel. All Republicans and moderate Democrats should consider them carefully.

We canโ€™t afford an out-of-control Fed much longer. Americaโ€™s central bank has blurred the line between fiscal and monetary policy beyond recognition. Washington ran $6 trillion in deficits during the COVID-19 years; the Fed added $3.3 trillion to its balance sheets over the same period. Thatโ€™s more than 50 percent indirect debt accommodation by monetary policymakers.

Our de facto experiment with Modern Monetary Theory has subjected millions of Americans to crippling price hikes. While inflation appears to be cooling down, prices are still rising more than three times as fast as the Fedโ€™s official goal. In fact, Fed officials donโ€™t expect prices to return to normal until 2025. So much for aggressive tightening.

What are our options for reform? All three bills mentioned above subject the Fed to the discipline of rules. Congress gave the Fed its famous โ€œdual mandateโ€ of full employment and stable prices in 1977, but those goals are hopelessly vague. They give the Fed an excuse for its mistakes. For example, the Fed failed to curb inflation partly because it was committed to easy money, which it thought would keep labor markets tight. The problem is the Fed decides for itself how to interpret its mandate. Congressional Republicans are rightly trying to return this authority to the peopleโ€™s representatives.

By David Brat and Alexander William Salter

Read Full Article on TheHill.com

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Was Texas Storm Manmade?

Another โ€œ1-in-100 yearsโ€ weather event in Kerr County happened next to a Texas designated โ€œWeather Modification Map of Rain-Enhancement Projects in Texasโ€.

The America Party Will Harm Democrats The Most

Elon Musk formed the America Party after an X poll asking his followers if they wanted โ€œindependence from the two-party system!

Democrats Exhibit the Dunning-Kruger Effect (DKE)

โ€œThe Dunning-Kruger effect is a cognitive bias where people with low ability at a task overestimate their competence, while those with high ability underestimate their competence.

250 Countdown

Those 56 intrepid men who signed put their very lives, honor and fortunes on the line. There was no auto-quill to accommodate their signatures.ย 

How the Senate Parliamentarian Changed the OBBB

An unelected bureaucrat does a important job in the U.S. Senate. Elizabeth MacDonough enforces senate rules on Trumpโ€™s โ€œOne Big Beautiful Billโ€.

Trial Begins Over Trump Adminโ€™s Deportations of Pro-Palestinian Students

A trial over President Trumpโ€™s attempts to deport pro-Palestinian activists began on July 7 with attorneys debating free speech.

Man Killed After Opening Fire at Border Patrol Facility in Texas

27-year-old man armed with a rifle was killed after opening fire outside Border Patrol facility in McAllen, TX, prompting shootout with feds and local police.

California Rejects Federal Push to End Transgender Participation in School Sports

CA education officials are refusing to end policies allowing transgender students to participate in school sports consistent with their gender identities.

Amazon Prime Day Set to Lift US Online Sales by $23.8 Billion

Online spending in the United States is expected to surge by $23.8 billion during Amazonโ€™s expanded Prime Day event from July 8 to July 11.

Trump to Extend Tariff Deadline to Aug. 1, Keep Rates at 10 Percent During Talks

White House press secretary Karoline Leavitt told reporters that Trump will sign the order to move the deadline to Aug. 1 from its current date of July 9.

DOJ, FBI Find Epstein Committed Suicide, Had No โ€˜Client Listโ€™

Jeffrey Epstein committed suicide and had no โ€œclient list,โ€ according to the Department of Justice (DOJ) and the FBI.

National Weather Service Fully Staffed During Deadly Texas Flooding: White House

White House press sec. Karoline Leavitt told reporters that the National Weather Service had a full staff on hand to handle the Central Texas flooding.

US Removes Terrorist Designation for Al Qaeda Affiliate in Syria

The State Department has removed from its list of foreign terrorist organizations Al Qaedaโ€™s affiliate in Syria, Jabhat al-Nusra.
spot_img

Related Articles