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The Federal Reserve: Sacred territory

 

Published 4/8/2009 at The Economist: Full print edition

The hyperactive Fed finds its cherished independence is on the line THE Federal Reserve has ventured ever further into the political realm, propping up failing companies, lending to industries other than banks and financing the federal budget through purchases of Treasury bonds. Now the politicians are threatening to respond in kind. By law, the Fed is independent. The president and Congress can do no more than name its seven governors, including the chairman. The governors share responsibility for monetary policy with presidents of the 12 reserve banks which are supervised by the board; these presidents are appointed by their banks’ boards and confirmed by the governors. ... (link)

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