Threatening the Fed

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

Did the Republican leadership do anything wrong by sending Ben Bernanke an ominous letter warning him not to intervene in the economy? Atrios thinks not:

I don’t agree with the substance, but I don’t think there’s anything wrong with Republicans sending the Fed a sternly worded letter. If you believe that central bank independence is important, then you don’t want the president being able to boss the Fed chairman around and similarly you wouldn’t want Congress trying to goad the Fed into one action or another through legislation. But there’s nothing wrong with policymakers expressing their opinions about what the Fed is doing.

But there are opinions and then there are opinions. The Economist thinks this week’s GOP assault is different in several ways from ones in the past:

One is that politicians, especially those from Texas, have historically wanted easier policy from the Fed….The second difference is that past critics had a point: Mr Volcker’s tight monetary policy did tank the economy. This time, the hysteria over inflation has no obvious factual basis….Third, and most important, historically the Fed’s antagonists came from the fringes of their (usually Democratic) party. Now Republican leaders and presidential candidates are flouting the idea of central-bank independence. That has troubling implications.

On reflection, I think I probably overreacted last night. I’m not as sanguine about the concerted Republican attack on the Fed as Atrios is, partly because it now has the flavor of official threats from the Republican leadership and partly because it’s so obviously aimed at trying to prevent any kind of effort to improve the economy. That’s pretty unprecedented and pretty indefensible.

But even granting that, Atrios is right: if politicians have opinions about monetary policy, there’s no reason they shouldn’t spout them. It’s when things go beyond mere spouting that they can get dangerous. On that score, the Republican letter may be defensible, but it’s still not something to be shrugged off as just politics as usual. Boehner & Co. show every sign of wanting to push the envelope much harder than before on this.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate