Independence Won’t Save the Federal Reserve
Murray Sabrin PhD

The real problem is that the Fed has pursued destructive policies for more than a century.

Kathryn Judge and Mickey D. Levy’s op-ed “A Key to Fed Independence: Its 12 Regional Banks” (May 15) misses the fundamental issue facing Americans. The real problem isn’t whether the Federal Reserve is sufficiently “independent.” The problem is that the Fed has pursued destructive policies for more than a century. Since its creation in 1913, the Fed has repeatedly distorted the economy by creating money out of thin air and manipulating short-term interest rates.

These interventions fuel price inflation, erode purchasing power and generate the boom-bust cycle that devastates working- and middle-class Americans. The economy doesn’t need a central-bank babysitter or a guiding hand from monetary planners in Washington. Prosperity emerges when free people make voluntary choices, businesses invest based on real savings, and interest rates are determined by markets rather than bureaucrats.

The Fed’s track record includes the Great Depression, the inflationary 1970s, the housing bubble, enabling today’s crushing national debt and persistent inflation. This is hardly evidence of sound stewardship.

A sustainable path forward requires a gold-backed dollar, market-based interest rates and a federal budget limited to constitutionally authorized spending. As America approaches the 250th anniversary of the Declaration of Independence, restoring economic liberty is essential to restoring a limited government republic.

 

 

 

 

Dr. Murray Sabrin is Professor Emeritus of Finance at Ramapo College of New Jersey, where he served on the faculty of the Anisfield School of Business for 35 years (1985–2020) and co-founded, with his wife, Florence, the Sabrin Center for Free Enterprise.

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