The leading political publications are currently inundated with commentary about the attempted assassination of Donald Trump and Joe Biden apparently dropping out of the presidential race. Lost in the shuffle is the issue of who Biden’s successor will appoint to the Federal Reserve Board of Governors if Democrats win another term.
Every party wants to appoint economists to the Federal Reserve that will enact its economic vision for the country. Unfortunately, the next Democrat president seems poised to overlook experience and competence and instead prioritize identity politics. The Biden administration has established the precedent of making appointments based on identity, and many people are suggesting that the close assassination attempt may have been the result of the Secret Service not choosing the best candidates for the job. If the Fed becomes dominated by unqualified candidates, dangerous results based on unsound economic theories such as Modern Monetary Theory (MMT) could fatally harm the United States economy with hyperinflation or sustained economic depression.
The Federal Reserve is the central banking system of the United States; it is responsible for maintaining the monetary policy of the United States. The three main goals of its monetary policy are to maximize employment, stabilize prices, and moderate long-term interest rates. The Federal Reserve has historically had three main tools for accomplishing these goals: setting the discount rate (interest rate) that it charges banks for borrowing directly from the Fed, conducting open market operations (buying and selling Treasury instruments), and setting reserve requirements (requiring banks to hold
