Bernanke fires back at Dodd, Paul bills to curtail the FedSubmitted by bobbyw24 on Sat, 11/28/2009 - 14:53
Legislation in Congress to audit and remove some power from the Federal Reserve would threaten the central bank's independence, Chairman Ben Bernanke said this weekend.
Bernanke, the chairman of the Fed, said that proposals from Rep. Ron Paul (R-Texas) and Sen. Chris Dodd (D-Conn.) contained in separate bills would harm U.S. efforts to stabilize the economy.
"I am concerned...that a number of the legislative proposals being circulated would significantly reduce the capacity of the Federal Reserve to perform its core functions," Bernanke wrote in an op-ed for the Washington Post to be published Sunday.
Bernanke referenced Paul's effort to audit the Fed (which Bernanke said would threaten the Fed's traditional political independence), as well as Dodd's financial overhaul bill, which would take a great deal of banking oversight authority out of the central bank's powers.