The Fed

The Federal Reserve claims to be independent and politically neutral. But since its actions have political ramifications, it is impossible for the Fed to be either.

One of the great myths of US history is that Herbert Hoover was a laissez-faire president. In truth, he intervened in the economy more than any of his predecessors, creating the crisis known as the Great Depression. His successor made things even worse.

While Vivek Ramaswamy was unsuccessful in his Republican presidential primary bid, at least he helped to demystify the Federal Reserve. This is not the usual political rhetoric the public receives.

A recent CNN broadcast claimed that deflation was bad for the economy and that we need to adjust to higher prices. As usual, the journalistic “experts” got it backward.

Paul Krugman claims that the real factor determining inflation is the rate of unemployment, not increases in the supply of money. As usual, he is wrong.

Few economists—even the free-market advocates—understand what caused the Great Depression. No, the Fed didn’t cause the Depression by failing to inflate the currency. Instead, it was the Fed’s inflation that led to the disastrous early events.

President Nayib Bukele of El Salvador recently spoke at the Conservative Political Action

Nearly two decades ago, Congressman Ron Paul identified his campaign with the call to "audit the Fed." Congress ignored him then, but the movement to examine and demystify the Fed now is growing.

The Federal Reserve claims to be independent and politically neutral. But since its actions have political ramifications, it is impossible for the Fed to be either.

As the Fed engages in rollercoaster monetary policies, the errors that build up during the Fed-induced boom turn into a veritable “circus of errors.”