Bernanke: Don’t tamper with the Fed
November 29, 2009 @ 3:58 pm
NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke, just days ahead of his confirmation hearing, is warning Congress that actions limiting the central bank's independence could prove detrimental to the causes of financial reform and economic recovery.
In an op-ed piece to be published in Sunday's Washington Post, Bernanke criticizes two moves aimed at limiting the Fed -- a proposal in the Senate to strip the central bank of its bank regulatory powers and a House Financial Services Committee vote to audit monetary policy deliberations and actions.
"These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the United States," Bernanke wrote.
Bernanke says the congressional moves are a byproduct of the public frustration over the financial crisis and the government's response, especially the bailout of large banks.
http://money.cnn.com/2009/11/28/news/economy/bernanke_oped/index.htm
