The Federal Reserve mishandled inflation



Inflation has become a major concern for the American public this past year. The Federal Reserve has failed to do its job and protect the public from out-of-control inflation. It is not a question of intent. The federal reserve was established to give the country a strong national bank and keep the business cycle in check. However, the liberals in Washington have let the Fed go unchecked leading to horrid inflation rates and economic instability. It is only through the stablizing hand of the private sector that inflation came under control last year. While a noble experiment, the federal reserve has failed to live up to its promising goal of controlling inflation through interest rate control. The free market should be trusted to regulate inflation through healthy competition. This competition will drive innovation and better practices, to stay competitive prices will stay low and wages will rise. 

“Meanwhile, consumer prices continue to climb at a rapid rate. Annual inflation in February was 6% down from 9.1% last June, but still well above the Fed’s target of 2%.” Commented Scott Horsley, spokesperson for NPR, on a podcast late last month. Even the liberally controlled media won’t deny the out-of-control inflation is a problem, “Still, policymakers made their decision and hiked rates for the ninth consecutive time. They raised overnight lending rates to a range of 4.75% to 5%, their highest level since September 2007” said Nicole Goodkind, a CNN “Reporter” in a recent article. It is their dear reader we see the true downfall of the fed. The Fed is a tired workhorse. Needed when the nation foolishly moved off the gold standard into fiat currency. But now it is struggling to stay in control. By lowering, raising, and raising again interest rates we can see that the Fed is grasping for control. In the midst of bank failure and on the verge of a recession, where do we find our trusted Federal Bank yet further extending its reach into the private sector?

It is the opinion of this writer that Joe, do nothing, Biden should finally move to get his administration together, rally Congress, and perhaps do some good by affecting real reform in the Fed. The fear that has been created by the recent bank failure and the distrust stoked by the recent inflation has left the American public asking “Why?” It is my opinion that the why is simply an old, decrepit system that is failing us.