There have been many stories this week about the battle between President Trump and The Federal Reserve about the direction of the US economy. Some appear to stay somewhat neutral. Most take the side of either the President or the Reserve. However, it is hard to find any which ask the real question.
Why is either trying to control the economy?
The United States Constitution gives Congress the power "... To coin money, regulate the value thereof, and of foreign coin, and fix the standards of weights and measures;..." Notice that it puts this power with the Congress and not the president or The Federal Reserve. It also says nothing about using this power to manipulate the economy. Neither President Trump nor The Federal Reserve should be trying to manipulate the economy. If branch of government should, it may be Congress under the Commerce Clause, but most would argue that is not the intent of that clause. Government agencies being involved in the economy inevitably ends to certain political interests benefiting to the loss of everyone else.
Two things should happen, but probably won't.
Congress should take back the power of creating money.
Beyond the function of providing security and a rule of law, government should get out of the practice of trying to control the economy.
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