Commentary
Recently, the White House released its plan to deal with inflation. Except for its commitment to off-load most of the effort onto the Federal Reserve (Fed), it offers little that can help except over the very long run, which means little for people paying to cool their homes this summer, bring home groceries, or fill their car’s gas tank for their daily commute.
The plan’s best feature is its acknowledgment of the Fed’s primacy in this matter. Inflation is always and ever a monetary problem. The Fed has begun an anti-inflation effort, but because it must now reverse the effects of years during which easy monetary policies effectively financed huge budget deficits—a classic prescription for inflation—it has a long way to go. The best the White House can do is encourage Fed policymakers in that effort, which the Biden-Harris plan seems to do….