agip wrote:
[quote]Hold your hats wrote:
without oversight
have to point out also that this is false
Oversight of the Federal Reserve System
The Federal Reserve System--including the Board of Governors and the 12 Federal Reserve Banks--is subject to a number of levels of oversight to help ensure that the System operates as a prudent, well managed, and effective public organization.
Is that so?
It seems that the Fed Chairwoman knows better:
Federal Reserve Chairwoman Janet Yellen on Tuesday swatted down suggestions from both sides of the aisle that it’s time for the central bank to change how it does business.
Appearing before the Senate Banking Committee, Yellen was on the defensive, as Republicans questioned how the Fed conducts monetary policy and Democrats put forward ideas for getting tougher on Wall Street.
In the midst of all of it, Yellen generally argued the Fed was designed as an independent entity for a reason — and it would be best not to change it.
“Central bank independence in conducting monetary policy is considered a best practice for central banks around the world,†she said. “Academic studies, I think, establish beyond the shadow of a doubt that independent central banks perform better.â€
The biggest challenge to the Fed’s structure is the growing movement to Audit the Fed via legislation from Sen. Rand Paul (R-Ky.) that would subject the central bank's monetary policy decisions to external review.
A GOP-controlled Congress has given the bill its best chances yet of passage, and that renewed interest led Yellen to deliver her most spirited opposition yet.
“I want to be completely clear,†she said. “I strongly oppose Audit the Fed.â€
Yellen argued the audit measure would allow politicians to second-guess the Fed’s decisions, which, in turn, would weaken the central bank. And the ultimate victim of that process, she said, would be the U.S. economy.