A surprising and welcome political development this year has been the emergence of a hard-money populism among Republicans. GOP candidates have noticed that Fed policies have produced spikes in food and energy prices that are hurting middle-class real incomes. Some have taken up Ron Paul's call for an audit of the Fed, but this is mostly political symbolism.
A better campaign theme would be a call to restore the Fed's independence and its focus on price stability. One concrete proposal would be to give more voting power on the FOMC to the regional presidents—the opposite of Mr. Frank's plan for more Washington control.Never forget: P.S. Dancing Queen. The Fed doing the twist: OPERATION TWIST BEGINS: FED TO SELL $400 BILLION OF SHORT-TERM DEBT, BUY $400 BILLION OF LONG-TERM DEBT, DOW OFF 220 And this. STOP MEDDLING: CEO’s Blockbuster Congressional Testimony: I Was Fined For Hiring Too Many People