See-we can make a difference: The Fed May Hesitate on More Easing After Critics Question MandateSubmitted by bobbyw24 on Wed, 11/17/2010 - 16:10
The Federal Reserve is facing the fiercest political assault on its powers in three decades as it struggles to help revive the U.S. economy.
The Fed’s plan to expand its purchases of Treasury securities has triggered criticism from Republican lawmakers, some economists who wrote an open letter to the Fed protesting the move, and finance officials in Germany, China and Brazil.
While central bank officials are pressing ahead with the $600 billion bond-buying program announced this month, analysts said the criticism may fan dissent within the Fed over the quantitative-easing policy. That may limit Chairman Ben S. Bernanke’s ability to take further measures if the economy remains weak.