bobbyw24
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- Sep 10, 2007
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The U.S. Federal Reserve is under more pressure than at any point in three decades over Chairman Ben S. Bernanke’s efforts to jumpstart the economy, and the criticism threatens to undermine support for the central bank.
Mitt Romney, once a Bernanke defender, now says he would replace him, as have Herman Cain, Newt Gingrich and other Republican presidential contenders. Republican congressional leaders have urged the chairman to “resist” further action. And even some Fed presidents came out against the central bank’s recent attempts to lower long-term interest rates.
“If you think of the Fed’s reputation, that is its key political asset,” said Sarah Binder, a senior fellow of governance studies at the Brookings Institution in Washington. “All of these criticisms leave a mark over time.”
Auditing the Fed
Texas Republican Representative Ron Paul, another presidential candidate, for years has called for audits of the Fed’s monetary policy decisions. Texas Governor Rick Perry said in August that things could get “ugly” for Bernanke in his state if he tried additional monetary stimulus.
“I do not recall there being a period of time when the Fed had fewer friends in Washington,” said Ward McCarthy, chief financial economist at Jefferies & Co. in New York. “The general public is not happy with what has gone on in Washington,” either.
http://www.moneynews.com/Economy/Undermining-Bernanke-Republicans/2011/10/18/id/414887
Mitt Romney, once a Bernanke defender, now says he would replace him, as have Herman Cain, Newt Gingrich and other Republican presidential contenders. Republican congressional leaders have urged the chairman to “resist” further action. And even some Fed presidents came out against the central bank’s recent attempts to lower long-term interest rates.
“If you think of the Fed’s reputation, that is its key political asset,” said Sarah Binder, a senior fellow of governance studies at the Brookings Institution in Washington. “All of these criticisms leave a mark over time.”
Auditing the Fed
Texas Republican Representative Ron Paul, another presidential candidate, for years has called for audits of the Fed’s monetary policy decisions. Texas Governor Rick Perry said in August that things could get “ugly” for Bernanke in his state if he tried additional monetary stimulus.
“I do not recall there being a period of time when the Fed had fewer friends in Washington,” said Ward McCarthy, chief financial economist at Jefferies & Co. in New York. “The general public is not happy with what has gone on in Washington,” either.
http://www.moneynews.com/Economy/Undermining-Bernanke-Republicans/2011/10/18/id/414887
