In “The Fed Pretends to Listen” (op-ed, Jan. 29), Donald L. Luskin chides the Federal Reserve for failing to answer questions about its goals and policies, most prominently asking: Why a 2% inflation goal? To get a clear answer one must recall Milton Friedman’s observation that “inflation is taxation without legislation.” The biggest debt issuer in the world is the federal government, and the Federal Reserve is the creation of, and banker to, that government. A 2% inflation rate effectively reduces the value of U.S. government...

Source: Wall Street Journal February 09, 2020 19:07 UTC