A Message from Consumer Action

Consumer Action's MoneyWi$e educational materials have moved to our Managing Money Project website. Here you may view, download and order bulk copies of the MoneyWi$e materials. Please make a note of the Managing Money Project address— www.managing-money.org —and add it to your address book.


Congress wants to micromanage the Federal Reserve

Source: Jared Bernstein, Washington Post (Paid Registration)

For central banks to be most effective in carrying out their mandates, they must be politically independent. Of course, the Federal Reserve must meet the broad mandates Congress legitimately sets for it, which in the U.S. case is full employment at stable inflation. But any micromanaging of how the Fed meets its mandates by those who hold political office raises the specter of politicizing the bank’s actions. As Fed Chair Janet L. Yellen recently wrote in a sharp critique of the proposal, the “framework” wherein central banks independently pursue their statutory goals “is now recognized as a fundamental principle of central banking around the world.”

Read Full Article: Congress wants to micromanage the Federal Reserve

 
 
 

Quick Menu

Support Consumer Action

Support Consumer

Join Our Email List

Optional Member Code
Facebook FTwitter T

MoneyWise Modules

Managing Money Topics

Help Desk

Advocacy