Day traders and their acolytes tried to pressure the Federal Reserve to open the money spigots wider this week. Fortunately, the Fed said no to QE3, at least for now. But it did vote to continue its super-easy, zero-interest-rate policy until mid-2013, well after the next presidential election.

The welfare of the citizens--poor, middle-class and wealthy--is best improved by using resources more productively. To realize the promise that the U.S economy has always offered, we must choose less social spending, less intrusive regulation, and more efficient use of resources in both the public and private sectors.

When countries run huge budget deficits with rapid money growth and a depreciating exchange rate, inflation follows. There is no reason to believe we will escape the consequences.

Congress should require banks to increase capital relative to their assets as asset size increases.

Instead of the Fed focusing on short-term goals, their focus should be on long-term inflation reduction, encouraging businesses to be more certain with their investments.

Nobel laureate Milton Friedman's main message for central banks was to maintain a monetary rule that kept the growth of the money supply constant, and would certainly not favor the Federal Reserve's current inflationary plan.

The Federal Reserve is considering attempts to stimulate the economy, but it should instead give up this nonsense about more stimulus and offer a credible long-term program to prevent the next inflation.

The Fed has rarely achieved its dual mandate--high employment and price stability--because of its excessive attention to current events and forecasts of high uncertain near-term developments.