Why The Fed Should Battle Inflation Now
Last week we asked whether you thought it was a good or bad idea if the Fed conducted regular press conferences to keep taxpayers abreast to their latest strategies and ideas. Author Andy Kessler seems to think it’s a smart idea — especially when it comes to the Fed’s upcoming battle with inflation (emphasis added):
My suggestion: Lay out a blueprint for pulling the money back in. Tell Wall Street and Main Street exactly what you are going to do, and when and how your plan will be triggered. When economic activity rises by 2 percent, you are going to increase interest rates by 1 percent and “retire” another $500 billion. That will stop second guessing and congressional quibbling. And I’d get it out quickly, this summer.
