There is enough volatility in our market system. Why should it all revolve around endless cycles of government manipulation and its counterintuitive consequences from an unelected body acting as judge, jury, and executioner of our economy?
Market-distorting monetary manipulations are no different from market-distorting fiscal policy from the government. This is how the statists have successfully dissuaded us from ever limiting government. “You really plan to pull the rug out from under such-and-such industry,” moan the forces of special interests, be it health care or the financial sector. The same applies to monetary policy. There is no reason why we should allow the Fed to use monetary stimulus in such an officious manner that the entire market would collapse without the monetary morphine, even during robust economic growth.
To be clear, much of the short-term news about the stock market is not nearly as bad as what is being reported in the media. The market was due for a correction, and bond yields inevitably had to rise to keep up with the economic growth. But the latest news should provoke lawmakers to get motivated once again to question the long-term effects of the Fed policies. They should audit the fed and explore ending the Federal Reserve’s dual mandate to focus on both price stability and maximizing employment … aka tinkering with the economy.
tinkering with the economy. A version of the “audit the Fed” bill passed the House twice by overwhelming margins when Obama was president. Yet it has been blocked in the Senate by the establishment in both parties. The most recent version passed the House Committee on Oversight and Government Reform last March. President Trump expressed support for it when he was running in the GOP primary. It’s time to add this to the growing list of winning issues Republicans would be wise to promote. The Federal Reserve should not be treated the way the political world treats the federal courts and be regarded as untouchable by Congress. We have enough lawless, unelected branches of government. It’s time to stop creating asset bubbles and misallocation of resources and return to a true organic equities market that reflects the economic realities of America. That will not happen until the Fed is brought under the checks and balances of the republic.