During a recent speech before Congress, US Federal Reserve head Jerome Powell categorically rejected the idea of returning the country to the use of the "gold standard." He does not consider this a good idea.
It must be said that Donald Trump proposed his economic advisor Judy Shelton as a candidate for a vacant seat on the Federal Reserve Board of Governors. She is known for supporting the return of the "gold standard" in the United States. However, Jerome Powell is confident that in this case, the Fed will not have the tools to create new jobs and sustainably maintain prices for goods.
Jerome Powell stressed that "in modern history there have already been cases where the price of gold was in a situation in which it would be impossible to guarantee the achievement of these goals." He does not consider the “gold standard” an attractive system, since no country in the world uses it.
It is worth recalling that the United States completely abandoned the "gold standard" in 1971, as president of Richard Nixon. If the US Congress changes the laws and forces the Fed to pursue monetary policy so that the price of gold in dollars remains stable, then, according to Powell, this will lead to an increase in unemployment and inflation in the country, as the Fed will be powerless to change anything.
In response to criticism from some congressmen, Powell said that "unemployment in the country is low and inflation has fallen below 2%, despite negative factors from abroad." In general, the Fed believes that the US economy is in a stable position.