Ted Cruz Grills Janet Yellen Over Good Money

Last week at a hearing before the Congressional Joint Economic Committee, JEC member Sen. Ted Cruz, who has — to great notice and some predictable attacks from the left — proposed restoring the gold standard, asked several very sophisticated questions of Fed Chair Janet Yellen. Cruz’s questioning was effusively praised by Scott Sumner, David Beckworth, and Norbert Michel, among others, as reported in the Washington Examiner‘s “Cruz steps outside GOP orthodoxy with free-market criticism of Fed.” The Examiner: For a Republican, Ted Cruz has a unique criticism of the Federal Reserve. The conservative Texas senator and contender for the GOP presidential

Game Changer: House Confronts Fed Chair Janet Yellen

On Thursday, Nov. 19, the Paul Ryan House took its most impressive step yet in advancing Speaker Ryan’s (R-Wis.) promised transformation of our political culture.  Ryan, in accepting the gavel, declared, “Here’s the problem. They’re working hard. They’re paying a lot. They are trying to do right by their families. And they are going nowhere fast. They never get a raise. They never get a break. But the bills keep piling up—and the taxes and the debt. They are working harder than ever to get ahead. Yet they are falling further behind. And they feel robbed—cheated of their birthright. They

Fed Reform Battle Heats Up in Congress

A new bill seeking to increase oversight on the Federal Reserve and force it to endorse a rule will likely come up in the House this week, kicking the debate over U.S. monetary policy into high gear: The bill, called the Fed Oversight Reform and Modernization Act — FORM Act for short — deals with a lot of issues relating to the Fed’s management of U.S. monetary policy, but one element of the bill will receive most of the attention and commentary by monetary policy specialists. This is the bill’s requirement that the Fed publish a rule that would, in

Rubio Gives Yellen a Vote of No Confidence

Reuters reports that Sen. Marco Rubio discussed the Federal Reserve while at a Wall Street Journal conference yesterday, saying that he would not renominate current Fed Chair Janet Yellen were he elected president. Rubio also teed off on recent Fed policies, arguing that Washington has become “Fed-obsessed”: “The Fed is no substitute for tax policies, regulatory policies, fiscal economic policies that create an environment that’s conducive to economic growth,” Rubio, a U.S. senator from Florida, said at a conference in Washington. “In fact the Fed oftentimes, by trying to compensate for bad fiscal policy, ends up making policies that dramatically

Cruz Joins Rand in Support of ‘Audit the Fed’ Bill

A bill subjecting the Federal Reserve to a more thorough audit process has finally hit the Senate floor—and Rand Paul and Ted Cruz have jumped all over it. The Federal Reserve Transparency Act of 2015, reintroduced to the Senate a week ago, would allow the Government Accountability Office (GAO) to audit the agency, therefore creating oversight over the Federal Reserve. “The Federal Reserve needs to fully open its books so Congress and the American people can see what has been going on.  This is a crucial first step to getting back to a more stable dollar and a healthy economy

Trump Is Right, Sorta; This Issue Could Be “Yuge”!

During the past two weeks, Donald Trump has made claims that Janet Yellen is keeping interest levels low to help Obama and the Democrats: “This is a political thing, keeping these interest rates at this level,” Trump, the billionaire Republican presidential candidate, said in a Wednesday interview with Bloomberg Television’s Stephanie Ruhle. “Janet Yellen for political reasons is keeping interest rates so low that the next guy or person who takes over as president could have a real problem.” That problem spurred by raising rates, Trump argued, could be “a recession or worse.” You’ve got to give credit where it’s due

Trump Attacks Janet Yellen and Federal Reserve, Again

Donald Trump doubled down on his criticism of U.S. monetary policy Friday, accusing Federal Reserve Chair Janet Yellen of artificially keeping interest rates low as a favor to President Obama.  Trump said the zero interest rate policy is meant to artificially prop up Wall Street and push a coming recession into the next administration, and that as soon as interest rates are raised “someone’s going to suffer”: TRUMP: Janet Yellen, for political reasons, is keeping the interest rate so low that the next guy…who takes over as President could have a real problem.  Keeping these interest rates at this level,

WSJ Confesses Fed Has No Clue How to Restore Economy

The cyberworld is buzzing from Janet Yellen’s announcement she’s not yet going to permit interest rates to find their market level.  Gradually, slowly but inexorably, even central bankers are beginning to acknowledge the Fed doesn’t have a clue how to make the economy grow. “Central bankers have injected roughly $8 trillion into the global economy since the financial crisis. In return, the world has remained in a low-growth rut,” is the lead paragraph of a front page story in Friday’s Wall Street Journal. Their central theory that manipulating money and interest rates artificially can spur growth is being disproven.  Their