Should the Federal Reserve's ability to print currency be changed?

Today, the Federal Reserve corporation continues to pose a problem with its
ability to print too much currency, thereby causing inflation and requiring
interest rate hikes.

One simple piece of legislation, which actually could be just a paragraph
inserted in an existing bill about to be passed by Congress, would solve the
problem.

It needs to merely read "The Federal Reserve shall not receive any of the
newly printed currency. All new currency printed shall be the US
government's and shall go directly into the general account of the US
government. The Federal Reserve, its banks, or any other corporations, can
receive currency once the US government spends it, or lends it. But, when
new currency is printed, that new currency shall belong to the US government
until the government spends it at face value. This law shall automatically
amend and override any existing law or laws on the books."

By doing this, it would then be in the interest of the Federal Reserve to
make better use of the existing currency already in circulation, since it
will not receive the newly printed currency. Presently there are two ways to
keep inflation down. One is to raise interest rates. The other way is to
print less new currency. Because the Federal Reserve has been printing
slightly too much currency, it sometimes must raise interest rates to keep
inflation down. If, however, this simple law is enacted, the Federal Reserve
will not benefit when more new currency is printed. Therefore, it will
quickly want less new currency printed so as to keep both inflation low and
interest rates low.


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