The Federal Reserve: A Prophet Arises From Louisiana

Freed from its responsibility to maintain the dollar’s fixed value in specie, the central bank has veered far from its legislated purpose.

Library of Congress via Wikimedia Commons
Congressman James Walter Elder of Louisiana, at right. Library of Congress via Wikimedia Commons

With the world beguiled by the predicament of the Federal Reserve — whether to raise interest rates to fight inflation or lower them to ease the banking crisis — this is a moment to reprise why Congress created the central bank in the first place. Monetary sage Edwin Vieira, Jr., reminds us that the Fed was formed at the acme of the Progressive Era to rationalize finance and prevent banking crises. Just like the one we have today.

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