Inflation is on the rise again, hitting the highest mark in 40 years, according to government figures. CEI Senior Fellow Ryan Young says the Fed, Congress, and President Biden have specific action items that would help get inflation in check:
“Inflation is up yet again, now to a 7.5 percent annual pace. That means the money supply grew 7.5 percent faster than did goods and services over the last year. The Fed can get them back in sync if Congress and President Biden let it. That means keeping political activists off the Fed’s board and not pressuring the Fed to keep money loose during an election year. That is one bipartisan tradition that must stop.
“While Congress is mostly powerless over the money supply—or should be—there is still plenty it can do. Cutting it out with the trillion-dollar spending deficits would be a good start. So would enabling more economic production by removing tariffs and other trade barriers that are clogging supply networks and loosening labor, permit, and licensing regulations that block people from pursuing better opportunities.”