Fed’s Powell explains why a return to the gold standard would be so damaging to the economy
“’You’ve assigned us the job of two direct, real economy objectives: maximum employment, stable prices. If you assigned us [to] stabilize the dollar price of gold, monetary policy could do that, but the other things would fluctuate and we wouldn’t care,’ Powell said from Capitol Hill. ‘We wouldn’t care if unemployment went up or down. That wouldn’t be our job anymore.’”
USAGOLD note: Powell’s right. The Fed would be out of business at worst or relegated to the role of a currency board at best. As we have said repeatedly here over the years, it is a long shot at best, in the first instance, that the United States would return to the gold standard at this juncture. And secondly, in the absence of a gold standard – and by consequence a more stable currency – the private investor would be best served by putting himself or herself on the gold standard through the ownership of physical gold coins and bullion.