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Government Trying To Take More Control Of Fed Reserve

Thursday, May 5, 2011 - 5:59 AM
Barney Frank tries to restructure the Federal Reserve - Yahoo! Finance

Since it's known that higher Fed rates would cost billions more in servicing our debt are they trying to control future hikes with this bill?
scottjscottj30 posts since
Jun 5, 2010
Rep Points: 800
1. Thursday, May 5, 2011 - 6:34 AM
The article seems to make the point that Barney Franks stated purpose will not be realized.  Rather the opposite of his stated purpose would likely result:
Mann points out that stripping the FOMC of the regional presidents would leave the Fed's decisions solely up to the governors based in Washington, D.C. and limit the board's diversity.

"Leaving it as only the Washington people, if anything narrows the range of perspective on the state of the economy -- as opposed to widening it," she said.

Why would Barney do something that brings about the opposite result of what he says he wants?

I think there is a small window of time left for the fed reserve and congress to face our troubles together. Bernanke has pleaded with congress to strip down the insane overblown budget, to bare necessities. Congress simply debates what's a necessity...and offers a fake token 30B... against a 1.5 Trillion dollar problem. I'm not sure bernanke can get out of this, if congress doesn't seriously start talking about cuts everywhere... including their overblown salaries and benefits... and airplanes... and staff. Has anyone else heard them talking lately... they refer to themselves as the political class. They ought to be the volunteer class. Start the cuts at home... your own pockets. Bernanke cannot fix this with a spouse like congress spending his "wages" into oblivion. Congress tells Ben, its not that "I" spend too much... you just don't make enough money. So what else is Ben supposed to do?  Soon, the phone may ring with creditors who want be paid.
MikeMike327 posts since
Feb 22, 2010
Rep Points: 876
2. Thursday, May 5, 2011 - 7:26 AM
Most of the inflation hawks are the Fed presidents. Thomas Hoenig was the famous one last year who was the only one to vote against the easy monetary policy.
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708