Dear Monetary Policy Observer,
The below text is from a new "Opposing View" response by our policy director, Jeff Bell, to a USA today editorial attacking Rick Perry for his recent comments regarding Treasury Secretary Bernanke. The article defends Mr. Perry by explaining why Bernanke's policies may be in need of correction. We hope you find this material of interest.
American Principles In Action
Opposing view: Gov. Perry is right
Texas Gov. Rick Perry has come under intense pressure to cease commenting on Federal Reserve Chairman Ben Bernanke's monetary policy for the remainder of the presidential campaign. He should ignore such advice.
The wheels have come off American monetary policy. The troubled era that began with the sharp decline in this country's residential real estate market in 2007 became a collapse in the liquidity of U.S. banks — a classic financial/monetary crisis. Yet the monetary gyrations that were the immediate cause of our problems have pretty much escaped scrutiny.
Yes, the Fed was set up to be independent of direct political control. But Bernanke and a majority of his open market committee are appointed by the president and confirmed by the Senate. Perry and other presidential aspirants have the duty to tell voters how their appointees would change present policies.