Judy Shelton: It's a mistake for the Fed to deliberately restrict capital access through high rates

Monetary Policy & Inflation - The Fed's 2% inflation target is considered by some to be above the original dual mandate, with a zero percent target preferred for pure price stability [2] - The Fed aims for stable inflation, but its track record in achieving this is questionable [3] - A little bit of deflation is considered a natural part of economic development due to technological and productivity improvements [6] - Current inflation measures, such as the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) indicator, may not accurately reflect the price inflation experienced by average American families [8] - The Fed's deliberate debasement of purchasing power necessitates inflation adjustments, creating confusion [9] Interest Rates & Economic Impact - The Fed's method of curbing inflation by restricting growth is questioned, particularly its reliance on Keynesian models that ignore the impact of lower taxes and less regulation on increasing supply [12][13] - High interest rates restrict access to capital, hindering real prosperity gained through the production of goods and services [15][21] - The Fed's actions empower the government at the expense of the private sector, especially small and medium-sized businesses [14] - Lowering rates is suggested to stimulate small business hiring by improving access to capital [21] Fiscal Policy & Government - Perpetual deficit spending is viewed as immoral and corrupt, creating purchasing power based on future, unproduced goods and services [16] - A balanced budget is crucial, and the inability to manage government finances is demoralizing [22][23] Alternative Monetary Solutions - A proposal suggests Treasury should issue a gold-backed long-term bond to compensate for losses in purchasing power, potentially competing with assets like Bitcoin [17] - Relinking the dollar to gold could be a cost-effective way for the government to borrow and signal a move towards sound finances [19][20]