Steve Forbes: 2 Crucial Questions for Trump's Fed Nominee to Prevent Economic Catastrophe

Key Questions for Federal Reserve Nominee

• 🎯 Senators must ask President Trump's nominee for the Federal Reserve, Steven Myron, two fundamental questions during his confirmation hearing.
• 💡 The first question concerns the nominee's view on the importance of maintaining a dollar stable in value.
• ❓ The second critical question is whether the nominee believes that prosperity causes inflation.

Inflation and Monetary Policy

• 💰 Inflation is defined as a reduction in the value of currency, often due to excessive creation of money by the Federal Reserve.
• ⚠️ The Fed's inability to distinguish between monetary inflation (devaluing the dollar) and non-monetary inflation (caused by production disruptions, taxes, or regulations) is highlighted as a significant problem.
• 📈 Central bankers are criticized for not prioritizing currency stability, despite its importance for efficient markets, akin to fixed weights and measures.

The Case for a Stable Dollar

• 🥇 The best method to ensure dollar stability is proposed to be fixing it to gold, due to gold's historical intrinsic value.
• ⚖️ As a formal gold standard is currently not favored, an informal range or reference to a basket of commodities could be used to gauge dollar value.

Challenging Economic Dogma

• 🧠 The notion that prosperity causes inflation is deemed preposterous, yet it is widely held by central banks.
• 📉 The Federal Reserve's tendency to try and stimulate or depress economic activity in the name of fighting inflation needs to be challenged and abandoned.
• ✅ A policy centered on a stable dollar is presented as the only viable path to avoid economic trouble.