The Fed's Conservative Critics Have Been Wrong

December 05, 2015

The Post has an interesting piece discussing Janet Yellen’s tenure as Fed chair as she prepares to possibly raise interest rates for the first time since the onset of the recession. The piece discusses Yellen’s Republican critics in Congress who want to rein in the power of the Fed to conduct monetary policy. These critics complain that the Fed has been too loose with the money supply and that this will result in runaway inflation.

It would have been worth noting that these critics have been repeatedly proven wrong. They have been complaining about loose monetary policy for over five years yet the inflation rate has consistently been well below the Fed’s 2.0 percent target. This information would have been useful to readers trying to evaluate the seriousness of their complaints.

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