Posted on | October 2, 2012 | 42 Comments
“Bernanke warns congress to butt out of interest-rate policy discussions . . .” is the headline up on the Drudge Report following the speech today by the Federal Reserve’s chairman at Indiana. It sounds to us like the chairman is warning Congress against passing Congressman Ron Paul’s audit-the-Fed legislation and Congressman Kevin Brady’s Sound Dollar Act, both of which would open up Fed policies to inspection. The chairman’s speech marks another step in the Fed and the Congress moving into what might be called open, if polite, confrontation.
It’s an important story. The fear the Fed chairman is trying to instill is that by conducting an audit of the Fed that includes its interest rate policy discussions, the Congress would open the Fed up to political interference. It strikes us as an illogical reach. The Fed, after all, is running one of the most radical interest rate programs in the history of the central bank. It’s been many an election since we’ve seen the Fed so close to the center of the presidential campaign.
“Zimbabwe” Ben Bernanke is #2, after #OccupyResoluteDesk, on the list of people who Have. Got. To. Go. in my opinion.
And Ben himself may not be a bad guy; maybe it’s the office. But the Federal Reserve has been for too long the bi-partisan vehicle for funding federal irresponsibility. The madness will stop. The question is whether the sudden deceleration is going to snuff the economy with it.