By Ron Paul
It is disappointing but not surprising that Jerome Powell is likely to follow the same easy money policies as Janet Yellen. Powell’s hints at a rate increase in December should not be taken as a sign of a change in direction since any hike is likely to leave rates at record low levels.
Janet Yellen is receiving much undeserved praise for her tenure as Fed chair. The truth is that Yellen’s time at the Fed was marked by historically low interest rates and money creation. Yellen’s policies benefited the economic and financial elites as well as big spending politicians. However, Yellen’s low interest rate policies failed to generate even the illusion of prosperity for middle-and-lower income Americans.
Yellen’s failures where inevitable since she had the misfortune of trying to stimulate the economy with fiat currency at a time when the fiat system is reaching its end. The popularity of cyber currencies like Bitcoin and the growing movement to pass bills recognizing gold, silver, and other precious metals as legal tender are signs that more Americans are realizing that our current monetary system is unstable and are seeking alternatives to the Federal Reserve’s phony money.
Before voting on the Powell nomination, Congress should take the first step toward reining in the Federal Reserve by voting on and passing Audit the Fed.
This statement was originally published at Campaign for Liberty.