Federal Reserve has abandoned monetary policy according to critics

January 5, 2009 by · Leave a Comment
Filed under: Opinion 

I agree, I don’t think we can call quantitative easing as a real monetary policy, more like a last ditch effort if you ask me.  Feels more like desperation in the face of a dire situation that in the end will take its course no matter what.  What I would like to find out is how the Fed got authorization to expand its balance-sheet past its normal $800 billion?  No body without congressional support and oversight should be able to run monetary operations like this that will in the end, saddle us with much public debt.

News:

The Federal Reserve has embarked on a campaign of unsupervised industrial policy to end the country’s financial crisis, a move that could undermine its independence, a former top U.S. official said on Saturday.

John Taylor, who was under secretary of treasury for international affairs from 2001 to 2005, said the explosive growth of the Fed’s balance sheet since September was “unbelievable.”

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