Judy Shelton For The Fed—An Urgently Needed Antidote To Its Keynesian Groupthink

We can debate whether the various rounds of quantitative easing (QE) financed the Obama deficits directly, but the Fed’s ZIRP (zero interest rate policy) certainly did make it easier for President Barack Obama to run immense deficits. The Fed enabled Uncle Sam to “tote the notes” of federal debt more easily by driving down its annual interest expense. Concurrently, ZIRP deprived millions of American savers of the ability to earn modest, safe returns on their savings at banks. In essence, under ZIRP economic power shifted to Washington and its Wall Street auxiliaries at the expense of the U.S. middle class.