June 17, 2005
The Power of the Fed
The new chairman of the Council of Economic Advisers is Ben S. Bernanke, an outstanding choice. He disagrees with Alan Greenspan, the Chairman of the Federal Reserve, on the power that the Fed should have in setting the country's economic climate. He would reduce the Fed's discretion, and its power, by requiring the Fed to be more transparent and more predictable by market participants. Greenspan wants the Fed to "maintain flexibility" (read power), by not binding itself in advance to a predicable strategy. Bernanke would be a great successor to Greenspan and get us out of the crazy game of hanging on every word of the Fed Chairman to "read the tea leaves" of the next Fed move. In the middle of a market economy, the Fed currently simply has too much influence.
June 17, 2005 | Permalink
TrackBack URL for this entry:
Listed below are links to weblogs that reference The Power of the Fed: