Hello and welcome to the political orphanage, a home for plucky misfits and problem solvers.

I'm your host, Andrew Heaton, and at long last, we are about to tackle the Federal Reserve. For many people, probably most people,

the Federal Reserve is simultaneously very important, somewhat mysterious, and extremely

boring. This week, we are doing a two-part episode on the Fed to try to pierce through all that.

Today, part one.

I will speak with Jeremiah Johnson about the nature of the Federal Reserve and some of its basics, like,

what is the Federal Reserve exactly?

Also, why does it shoot for 2% inflation? Why not zero? Why not seven?

Why is it independent? What happens if it becomes less independent? That seems relevant as

President Trump threatens to fire Chairman Jerome Powell or, as I call him, J. Powell.

Jeremiah represents the consensus view on modern economics and the Federal Reserve,

and so after walking us through the basics, he will make the case that the Fed does a pretty good job,

and we shouldn't politicize it or eliminate it.

Tomorrow, we will invite on Gene Epstein, who takes a very dim view of the Federal Reserve, and he will make the case that we would be better off without it.

Gene will opine that the Fed allows the government to debase currency to finance its operations and that it fails at its state admission of economic stability and low inflation.

By the end of the week, you will know more about the Federal Reserve than you ever

wanted to know. But for the rest of your life, when you hear some news guys say,

the chairman of the Fed lowered interest rates by two basis points, you'll actually know what that

means. You can turn to whoever's next to you and say, oh, I think that's a

bad call. Here's why. That's what we're talking about today. But first, quick announcement,

gang, I am going on vacation next week, the first week of August, where I will be scurrying across

Finland, Sweden, and Norway. If you live in Finland or Scandinavia and you

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