Richard Fisher on Fed Independence
In an Op-Ed in today’s WSJ.
Key quote, especially considering any political/Congressional control of the Fed would be wielded by the big-spending liberal majorities in Congress and the White House:
The impulse to use Mr. Bernanke as a political punching bag raises the specter that, instead of doing the right thing, Congress may seek to pressure the Fed to print its way out of this crisis. We know from history that when fiscal authorities attempt to monetize their debts, the result is inevitably inflation.
Many of the Fed’s detractors (like Ron Paul and Jim DeMint) believe that the Fed will be the one to make the decision to “inflate away” our nation’s national debt, when in reality, such an impulse is much more likely to come from elected officials with their political lives at stake. It’s best not to turn over the keys to monetary policy to such individuals, as Mr. Fisher aptly explains.