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Bernanke on Fed Independence

December 2, 2009

Independent does not mean unaccountable. In its making of monetary policy, the Fed is highly transparent, providing detailed minutes of policy meetings and regular testimony before Congress, among other information. Our financial statements are public and audited by an outside accounting firm; we publish our balance sheet weekly; and we provide monthly reports with extensive information on all the temporary lending facilities developed during the crisis. Congress, through the Government Accountability Office, can and does audit all parts of our operations except for the monetary policy deliberations and actions covered by the 1978 exemption. The general repeal of that exemption would serve only to increase the perceived influence of Congress on monetary policy decisions, which would undermine the confidence the public and the markets have in the Fed to act in the long-term economic interest of the nation.

‘Nuff said.

2 Comments leave one →
  1. Ariosto permalink
    December 4, 2009 8:24 pm

    Ah, yes, the one time “conservatives” are certain the government has it right: monetary policy! The Fed can most certainly, assuredly be trusted not to abuse it’s power to create money out of thin air. After all, they’ve been so responsible with it thus far! Thank goodness Hayek and the Austrians were wrong to blame the boom-bust cycle on credit expansion by the central bank. That way, “conservatives” like cjm can seem very smart and moderate in endorsing the continued wall of secrecy that surrounds this wrecker of civilization. Again, cjm, good luck saving your country.

  2. Ariosto permalink
    December 4, 2009 8:25 pm


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