{"id":1658583,"date":"2022-09-26T13:41:10","date_gmt":"2022-09-26T17:41:10","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1658583"},"modified":"2022-09-26T13:41:25","modified_gmt":"2022-09-26T17:41:25","slug":"steve-forbes-reveals-the-key-tool-officials-are-not-wielding-against-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/steve-forbes-reveals-the-key-tool-officials-are-not-wielding-against-inflation\/","title":{"rendered":"Steve Forbes Reveals The Key Tool Officials Are Not Wielding Against Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsteve-forbes-reveals-the-key-tool-officials-are-not-wielding-against-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1658583&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Steve Forbes, the chair of Forbes Media and editor-in-chief of Forbes Magazine, argued on Monday that monetary policymakers are neglecting currency stabilization as a tool to combat <a href=\"http:\/\/dailywire.com\/topic\/inflation\" target=\"_blank\" rel=\"noopener\">inflation<\/a>.<\/p>\n<p>Price levels between August 2021 and August 2022 rose 8.3%, according to <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\">data<\/a> from the Bureau of Labor Statistics, marking a slight moderation from an 8.5% year-over-year increase in July and a 9.1% year-over-year increase in June. The <a href=\"http:\/\/dailywire.com\/topic\/federal-reserve\">Federal Reserve<\/a> responded on Wednesday by <a href=\"https:\/\/www.dailywire.com\/news\/heres-what-the-federal-reserves-recent-rate-hike-means-for-the-economy\">increasing<\/a> the target federal funds rate by 0.75% \u2014 a move that mirrored identical aggressive rate hikes in June and July.<\/p>\n<p>Raising interest rate targets has the effect of discouraging economic activity by increasing the cost of borrowing money. During the Forbes Global CEO Conference in Singapore, Forbes questioned the logic of sending the economy into a recession in order to reduce inflationary pressures, according to a <a href=\"https:\/\/www.cnbc.com\/2022\/09\/26\/the-real-cure-for-inflation-has-gone-ignored-forbes-says.html\">report<\/a> from CNBC.<\/p>\n<p>\u201cNo central banker today \u2014 hardly any \u2014 talks about stable currencies. It\u2019s about depressing the economy to fight inflation,\u201d he remarked. \u201cWith unstable currencies you get less productive long-term investments, which is key to economic growth.\u201d<\/p>\n<p>Currency appreciation leads to more costly exports for overseas buyers, according to an <a href=\"https:\/\/www.imf.org\/external\/pubs\/ft\/fandd\/basics\/monpol.htm\">analysis<\/a> from the International Monetary Fund. The dollar has appreciated rapidly against foreign currencies <a href=\"https:\/\/www.dailywire.com\/news\/global-turmoil-makes-euro-cheap-for-americans\">such as the euro<\/a> amid the repeated interest rate hikes, decreasing demand for American products and lowering economic output.<\/p>\n<p>\u201cToday, unfortunately, not only is the Biden administration putting up obstacles to deal with supply-side problems, but also the Federal Reserve and other central banks think you have to depress the economy to bring inflation down,\u201d Forbes added. \u201cThe real cure is to stabilize the currency. You don\u2019t have to make people poor to conquer inflation.\u201d<\/p>\n<p>Forbes cited former President Ronald Reagan\u2019s efforts to bolster American reserves of foreign currencies \u2014 a move that increases the supply of the dollar on foreign exchange markets, thereby decreasing exchange rates. Unpredictable exchange rates also increase currency risks for overseas investors, leading to less foreign direct investment into the United States.<\/p>\n<p>Forbes, who ran for the Republican presidential nomination in 1996 and 2000, likewise suggested a return to the gold standard. \u201cGold holds its intrinsic value better than anything else on earth\u2026 gold is not perfect as a stable value, but it is better than anything we have found in over 4,000 years,\u201d he explained.<\/p>\n<p>To stimulate the economy during the lockdown-induced recession, the Federal Reserve had initially <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-releases-plan-to-more-urgently-address-high-inflation\">pegged<\/a> a near-zero target interest rate and acquired government bonds from the market. The rollback of the stimulus from policymakers occurs as price levels rise at the fastest rate in four decades.<\/p>\n<p>Federal Reserve Chair Jerome Powell said during a <a href=\"https:\/\/www.dailywire.com\/news\/jerome-powell-vows-to-restore-price-stability-even-though-federal-reserve-must-first-bring-some-pain\">hawkish speech<\/a> at the central bank\u2019s symposium in Jackson Hole, Wyoming, that officials are prepared to \u201cbring some pain\u201d to combat rising price levels and return inflation to the long-term target of 2%. \u201cPrice stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy,\u201d he asserted. \u201cWithout price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all.\u201d<\/p>\n<p>The Dow Jones Industrial Average, which tracks 30 of the most prominent companies on American exchanges, <a href=\"https:\/\/www.dailywire.com\/news\/federal-reserve-announces-rate-hike-of-0-75\">tumbled<\/a> more than 500 points after the Federal Reserve hiked interest rate targets last week.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Steve Forbes, the chair of Forbes Media and editor-in-chief of Forbes Magazine, argued on Monday that monetary policymakers are neglecting currency stabilization as a tool to combat inflation. Price levels between August 2021 and August 2022 rose 8.3%, according to data from the Bureau of Labor Statistics, marking a slight moderation from an 8.5% year-over-year &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1658586,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1658583","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1658583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1658583"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1658583\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1658586"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1658583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1658583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1658583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}