Steve Forbes Roasts Federal Reserve

In the name of fighting inflation, the Federal Reserve is raising interest rates again. As this episode of What’s Ahead points out, our central bank is suffering from amnesia. It’s applying the same approach it used during the Great Inflation of the 1970s and early 1980s: inducing a recession. The downturn would suppress prices because people would have less money to spend and businesses would cut prices because of declining sales.

But the Federal Reserve would then once again undermine the integrity of the dollar, and inflation would reappear.

Only in the early 1980s when the Fed started focusing on a more stable dollar and President Ronald Reagan’s growth-spurring tax cuts were enacted was the inflationary monster slain.

The Fed can’t do anything about Joe Biden’s bizarre, economy-suppressing policies, but it can help the economy by actively pursuing a stable greenback.