We’ve told you about the war on the Federal Reserve launched lately by conservatives. And now comes evidence that it could be gaining some traction in the court of public opinion.
Fifty-five percent of Americans say the central bank should either be reined in or abolished entirely, according to a new Bloomberg poll. Thirty-seven percent say it should be left as is.
Since the Fed last month announced plans to buy $600 billion in Treasury bonds in an effort to jolt the slumbering economy, small-government conservatives have gone ballistic. Former Fed Chairman Alan Greenspan has said the move could weaken the dollar, and Sarah Palin — not usually cited as an authority on monetary policy — has warned that the move will lead to rising prices, going so far as to invoke the hyper-inflation of 1920s Germany.
The attacks have been so intense that Fed Chairman Ben Bernanke has launched a counter-offensive, going on “60 Minutes” to defend the asset purchases as a source of much-needed economic stimulus.
The After-the-Fed Debate Begins: Greenbackers vs. Goldbugs