Monday, January 26, 2009

The Fed as Financial Regulator

The Washington Post reports about a move afoot to give the Federal Reserve more regulatory power over the financial system.

Considering that the Federal Reserve is supposed to be independent of the government, it would seem that getting such powers to the Fed would be ill-advised.

In addition, considering that the Fed's posture in the bailout makes the Treasury Department looks like a paragon of transparency, giving such powers to the Fed seems even more questionable.

When the Democrats promised change, I thought they meant change for the better. Maybe I was wrong.

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