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Thursday, November 12, 2009

Fed, Congress Face Showdown

“The Federal Reserve has over the decades viewed its independence from political influence as crucial for its ability to guide the U.S. economy. But the central bank’s activist response to the financial crisis has exposed the Fed to immense political fallout. That will make it more difficult for the Fed to carry out its responsibilities of guiding the national economy out of a recession and withdrawing its emergency support for the economy at just the right time, say former Fed officials and others who closely follow the central bank. Chairman Ben S. Bernanke, whose confirmation for a second term is pending in the Senate, is attempting a quiet campaign to maintain the Fed’s standing on Capitol Hill, defending the central bank’s handling of the financial crisis in private meetings with lawmakers and occasional public appearances.” (Washington Post, Thursday)

Another fiction we live by.

FEE Timely Classic
“The Myth of the Independent Fed” by Thomas J. DiLorenzo

  • Sheldon Richman is the former editor of The Freeman and a contributor to The Concise Encyclopedia of Economics. He is the author of Separating School and State: How to Liberate America's Families and thousands of articles.