According to a report I have before me, straight from the U.S. Senate, prominent Federal Reserve officials, including the presidents of the Federal Reserve Banks of New York and Philadelphia, have publicly endorsed legislation that would establish a bipartisan Monetary Commission authorized “to make a thorough study of the country’s entire banking and monetary set-up,” and to evaluate various alternative reforms, including a “return to the gold coin standard.” The proposed commission would be the first such undertaking since the Aldrich-Vreeland Act established the original National Monetary Commission in 1908.
Surprised? It gets better. The same Senate document includes a letter from the Fed’s Chairman, addressed to the Senate Banking Committee, indicating that the Board of Governors itself welcomes the proposed commission. Such a commission, the letter says, “would be desirable and could be expected to form the basis for conservative legislation in this field.”
Can it be? Have Fed officials had a sudden change of heart? Have they really decided to welcome the proposed “Centennial Monetary Commission” with open arms? Is it time to break out the Dom Pérignon, or have I just been daydreaming?