We Need an Independent Fed

Fed independence is under scrutiny, but the real issue is adherence to sound monetary policy. The article argues that political interference led to the inflation of the 1970s. Politicians often prioritize short-term growth over long-term stability.

Former Fed Chair Jerome Powell is criticized for enabling massive COVID-era spending through loose monetary policy. This resulted in high inflation and increased inequality. The authors believe Powell should have stepped down to allow a new chairman to pursue sound money principles.

The article suggests focusing criticism on actual monetary policy errors, not tangential issues like construction costs or board member conduct. This would enable a return to policies that support long-term economic growth.