Congress is Going After the Fed and It's Kind of Funny but Sad
Congress wants to take back the Fed, apparently.
This might get entertaining.
Federal Reserve regional bank presidents and U.S. lawmakers intensified a clash over giving Congress a greater say in appointing the central bank officials, who are now named in part by private-sector banks.
St. Louis Fed President James Bullard said yesterday proposed legislation to subject some officials to Senate confirmation is a “blatant politicization” of the Fed. Separately, seven House Democrats called for an “exploration of possible changes” in how the Fed is governed, saying there’s an “inherent conflict” in the way presidents are named.
Proposed legislation in the Senate risks higher inflation if there’s too much political pressure on the Fed to keep interest rates low while the economy rebounds, some former Fed officials say. Lawmakers say private-sector banks have too much influence at the Fed, and that the regional Fed bank presidents focus too much on inflation at the expense of job growth.
“This is going to be a big battle,” said former Fed Governor Lyle Gramley, now a senior economic adviser to New York-based Soleil Securities Corp. “The danger is the new arrangement will politicize the Fed to the point that they don’t do what’s necessary” when the central bank needs to raise interest rates, he said.
The powers and autonomy of the 12 regional Fed presidents are under threat on several fronts in Congress.
Under a draft bill released Nov. 10 by Senate Banking Committee Chairman Christopher Dodd, directors at each regional bank would be chosen by the Fed’s Senate-confirmed governors, and each board chairman would be subject to White House appointment and Senate approval. Currently, two-thirds of directors are chosen by private-sector banks and one-third by the Fed’s Washington-based governors.
I said it was the nut vice, why didn't you guys listen to me then? I tried to warn you fuckers but only 1% of you wanted to listen. Whose problem is that?
Barney Frank still refuses to shut his trap:
The boards of directors of each Fed bank select the president, who votes on monetary policy and is approved by Fed governors in Washington.
Dodd, who will begin debate on his financial-overhaul legislation today, also proposed stripping bank-supervision authority from the Fed and its regional banks and called the Fed’s regulation an “abysmal failure.”
The House Financial Services Committee voted on Nov. 17 to amend legislation to limit powers of the regional Fed presidents, so they wouldn’t share the decision-making power awarded the Fed board to oversee financial stability.
“I doubt very much that by a year from now Fed presidents are going to have as big a role as they now have,” Financial Services Committee Chairman Barney Frank told reporters after the vote. Frank said the presidents are “private citizens” who shouldn’t have “governmental powers.” He has said the presidents too often vote in favor of higher interest rates.
Yeah, this isn't really what we meant when we said "end the Fed"...
Can someone else chime in here??
How about News N Shit in "Can a Central Bank Go Broke?":
Let's hope that once these monetary authorities are exposed as broken, they will be fixed in light of the true needs and demands of a prosperous economic order. Free Banking, operating under established legal principles coupled with the private production of money, will ensure that an oversized banking industry does not develop. Neither will it rely on the fallacy that an omnipotent centralized monetary authority is always on guard, ready to save capitalism from its own excesses.
Fuck you. Let's make it a trade, put Summers on the Treasury team and trade Janet Yellen for two Jeffrey Lackers and a Richard Fisher. No Geithners, no one wants any of those.
I don't want Barney Frank to make this decision. I don't know who put them there but I think having 12 different opinions is better than having a bunch of fuckers Barney Frank wants in there deciding how much of a return my grandma gets on her CDs. Maybe that's just me. Get him out of there.
Either dismantle the Fed or leave them alone and let them shoot themselves in the foot trying to execute this non-existent "exit strategy" they have. Either way it'll be entertaining.
I like the second alternative. Just watch them, it's hilarious. Bullard ruined the plan (the fucking Mayans, come on, dude) and Yellen is an idiot and Fisher is pissed and Lacker is MORE pissed. Come on, it's better than TV.