After meeting with progressive lobbyists at the Federal Reserve’s annual Jackson Hole retreat, Fed policymakers declared on Friday that the Fed needed new “tools” to manage the economy, including the ability to buy non-government-backed assets like corporate debt, which would add to the Fed’s historically gargantuan $4.5 trillion balance sheet.
One place for Congress to start would be to pass Rep. Kevin Brady’s idea for a monetary commission to consider the role and structure of the Fed in its second century. Commissions can be political evasions, but in this case such a body with the right members could ignite a debate about the Fed that the monetary priesthood and most of Washington don’t want to have. In a healthy democracy, no body can accumulate power as the Fed has without more accountability.
Ralph Benko, a major advocate for the Centennial Monetary Commission Act and a senior economic advisor to American Principles Project, called The Wall Street Journal’s endorsement a “big deal” in a post yesterday:
This is a big deal. The monetary commission actually has been passed by the House and now is pending in the Senate… This is a high-power, and historic, piece of legislation. This commission is the optimal way to raise the issue of monetary integrity and determine the best method to achieve it.
Jon Schweppe is the Communications Director for American Principles Project. Follow him on Twitter @JonSchweppe.