Monday, July 13, 2009

What he said 

What we want is an independent Federal Reserve that won't be kow-towed by politics. The fact is that there's no way a new, Congressionally audited Federal Reserve could ever be more independent of Congress. That's just impossible. Even if some Congressmen have principled objections to the way the institution has handled itself during the crisis, that's doesn't describe the motivations of the whole body, which just wants to expand its power.

If you want a Fed that will stand up to Congress -- not print money every time Congressmen want to spend it -- then the last thing that makes sense is to make the Fed more answerable to Legislative branch.

Source. See prior posts here and here.