Fed Governor: We Need to Print More Money!

To paraphrase the old saying, in for $7 trillion, in for a pound… right?

That seems to be the view of Fed Governor Lael Brainard, who said that the Fed needs to come up with new efforts in the months ahead to help the economy through the pandemic and promote job growth and inflation.

Brainard said:

“It will be important to provide the requisite accommodation to achieve maximum employment and average inflation of 2% over time.”

That’s Fedspeak for, “We need to print gobs more cash and hand it out so that when people spend it, other people will have jobs.”

Brainard went on to point out that the economic effects from the shutdown in the face of the pandemic will be with us for some time, and that the Fed’s policies should move from support to expansion. Once the Fed thinks the economy is stable, it plans to figure out how to make it grow. Given that the central bank only has a few tools and interest rates are near zero, it doesn’t take a genius to figure out they will print a lot more cash.

As is typical, Brainard didn’t mention the risks of keeping interest rates low for an extended period of time and printing more money out of thin air.

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