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Congressional Abdication to the Fed by Bruce Fein

Abdication of responsibility mothered by political poltroonery, thy name is Congress. Emblematic is the congressional delegation of staggering authority over the nation's monetary and economic policy to the 7-member independent Board of Governors of the Federal Reserve System. The open-ended delegation is indistinguishable from a law entrusting the Director of the Internal Revenue Service to promulgate an income tax code that is fair, promotes economic growth, and raises revenue sufficient to balance the budget.

The Fed was conceived in 1913 by the Federal Reserve Act, dedicated to the proposition that rule by omniscient Platonic Guardians was preferable to a republican form of government. It was initially tasked by Congress to create an elastic money supply to accommodate changing seasonal needs for currency. But via congressional amendments to the 1913 Act, the Fed has grown from a modest acorn into a towering oak. Congress has delegated to the Fed responsibility for "maximum employment, stable prices, and moderate long term interest rates." But the Fed's outlandish interpretation of the amendments is reminiscent of airbrush artistry. In a 2007 address, Frederic S. Michkin, then member of the Board of Governors, preached that the Fed's ultimate statutory purpose was "social welfare," for example, diminishing "human misery," including poverty, the incidence of divorce, suicide, violent crime, and "loss of self-esteem." The multiple purposes thrust upon the Fed by Congress authorizes the concoction of a monetary recipe for any social ill it discerns. To borrow from Shakespeare's Julius Caesar, "Now in the name of all the Gods at once, upon what meat doth this our Federal Reserve Board feed that it has grown so great?" The answer: monumental unconstitutional congressional abdication of legislative power



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