0 votes

Barnanke's Wash Post Op Ed Against Fed Audit

The right reform for the Fed

By Ben Bernanke
Sunday, November 29, 2009

For many Americans, the financial crisis, and the recession it spawned, have been devastating -- jobs, homes, savings lost. Understandably, many people are calling for change. Yet change needs to be about creating a system that works better, not just differently. As a nation, our challenge is to design a system of financial oversight that will embody the lessons of the past two years and provide a robust framework for preventing future crises and the economic damage they cause.

These matters are complex, and Congress is still in the midst of considering how best to reform financial regulation. I am concerned, however, that a number of the legislative proposals being circulated would significantly reduce the capacity of the Federal Reserve to perform its core functions. Notably, some leading proposals in the Senate would strip the Fed of all its bank regulatory powers. And a House committee recently voted to repeal a 1978 provision that was intended to protect monetary policy from short-term political influence. 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. The Fed played a major part in arresting the crisis, and we should be seeking to preserve, not degrade, the institution's ability to foster financial stability and to promote economic recovery without inflation.

continue: http://www.washingtonpost.com/wp-dyn/content/article/2009/11...

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

like an arsonist extolling his own virtue

In Ben Barnanke's Washington Post Op Ed against the US Government Audit of the private Federal Reserve Bank's books he states, "The Fed played a major part in arresting the crisis" This is like an arsonist extolling his own virtue because he stayed behind and assisted the firefighters in extinguishing the fire he created...Tell us where our money went! Why fight the audit if you have nothing to hide? Audit the Fed. Quit the theft and corruption…

northstar's picture

Ben's plea is weak

Audit the Fed, then End the Fed

Real eyes realize real lies

We want our country back

Every year is a year for Ron Paul!