Grant: 'Forgotten Depression' Proves Fed Should Leave Market Alone

The American economy corrected itself following the deep economic slump of 1920-21 and current Federal Reserve members should know that meddling only prolongs the pain, said James Grant, author of 'The Forgotten Depression'. Grant added that former Federal Reserve Chairman Ben Bernanke should be aware that government stimulus did not lead to a quick recovery in the wake of the Great Depression. In fact, Grant said the White House-led campaign to prop up wages helped turn a bad recession in 1929 into America's worst depression. Finally, Grant said the ability of the economy to bounce back after the 1921 slump proves the resiliency of the free enterprise system.