IN 1993, BILL CLINTON, young and full of hope, aspired to prod the still sluggish economic recovery to life by passing an economic-stimulus measure. But the Federal Reserve, reported the New York Times, feared Clinton “would embrace too large a stimulus plan of, say, $60 billion.” Clinton’s aides, for their part, feared that if the plan did succeed in accelerating growth, the Fed would simply choke it off by raising interest rates. Even if they could pass it through the Senate (which they couldn’t; even after the House reduced the cost to a trivial $16 billion, Republicans filibustered it), then–Fed chair Alan Greenspan would just shoot dead whatever staggered through Congress.
Last week, Jerome Powell gave a speech on the labor market. The current Fed chair implicitly approved President Biden’s…