Conquer inflation by binding the Fed with a monetary rule

Inflation is the top economic issue for most voters, according to nearly every poll. The dollar has devalued by more than 20% since the pandemic hit, and inflation remains stubbornly high. Mortgages and car payments are less affordable than they were before COVID-19, and not everyone’s paycheck is keeping up with the increased costs.

The next administration must get inflation back to pre-COVID-19 levels and make sure runaway inflation does not return. One way to do this is to curtail the Federal Reserve’s power to decide policy all on its own. In short, Congress could make inflation less of a problem in the future by passing a binding policy rule on the Fed now.