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Fed chairman pens op-ed panning proposed audit

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The head of the US central bank said Saturday he was “concerned” by some congressional proposals aimed at regulating the US financial system that infringe upon the powers of the Federal Reserve.

“I am concerned, however, that a number of the legislative proposals being circulated would significantly reduce the capacity of the Federal Reserve to perform its core functions,” Federal Reserve Chairman Ben Bernanke wrote in an op-ed piece in The Washington Post.

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He said some proposals considered by the US Senate as part of attempts to strengthen US government regulation of the financial sector would strip the Fed of all its bank regulatory powers.

He also noted that a House committee had recently voted to repeal a 1978 provision that was intended to protect monetary policy from short-term political influence.

“These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the United States,” Bernanke wrote.

“The Fed played a major part in arresting the crisis, and we should be seeking to preserve, not degrade, the institution’s ability to foster financial stability and to promote economic recovery without inflation,” he stressed.

“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,” Bernanke argued. “Now more than ever, America needs a strong, nonpolitical and independent central bank with the tools to promote financial stability and to help steer our economy to recovery without inflation.”

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Congressman Ron Paul (R-TX), who has sought to audit the nation’s largest bank for nearly 27 years, does not believe Bernanke’s fears are substantiated.

“There is no reason why the world can’t know, eventually, what the Fed is doing,” he said recently.

His legislation, House Resolution 1207, cleared a key congressional panel on Nov. 19 by a vote of 43 to 26.

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“[It] would require the Government Accountability Office to audit the central bank’s interest rate policy, agreements with foreign governments, foreign central banks and the International Monetary Fund,” according to MarketWatch. “It also would permit audits of a roughly $800 billion Fed mortgage-backed securities purchase program, which could grow to $1.25 trillion, Paul said.”

This video is from Russia Today, broadcast Nov. 23, 2009.

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With AFP.


Report typos and corrections to: [email protected].
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‘We’re still flying blind’: MSNBC host aghast that US has tested less than 1 percent of Americans

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Horrifying statistics were confirmed Thursday, that the United States has over 450,000 cases of coronavirus and still under 1 percent of the population has been tested.

The information came after President Donald Trump said the previous day that he was expecting to reopen the country within a few weeks. At the same time, it was revealed that Trump is pulling back the funding for the test sites. There are roughly 30,000 new cases of coronavirus daily and over 3 percent of those have been fatal.

"The so-called Community-Based Testing Sites program was intended to jumpstart initial testing capabilities to critical areas across the US, according to the agency," CNN reported. "But given FDA approval for individuals to self-administer nasal swab tests at sites, the demand for personal protective equipment and trained health care providers will be reduced, a FEMA spokesperson said in a statement."

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US man arrested for beating mom after she hid toilet paper

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A California man was arrested this week after allegedly punching his mother -- who had apparently hidden the family's stash of toilet paper because of his excessive use of the hot commodity.

Police were called to the family's home in Saugus, north of Los Angeles, at 3:00 am Monday following a dispute over the whereabouts of the hygiene product, Shirley Miller, spokeswoman for the Santa Clarita Valley Sheriff's Station, told a local news service.

The argument between Adrian Yan and his mother escalated and he allegedly ended up punching her, Miller said. He was detained on suspicion of battery, she added.

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Judge orders unaired ‘Celebrity Apprentice’ footage turned over to plaintiffs suing Trump

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A judge has ruled that unaired footage from the reality TV show Celebrity Apprentice should be handed over to a group of entrepreneurs who say they were scammed by Donald Trump and his children who repeatedly endorsed a questionable multilevel marketing company on the show, according to a report from Bloomberg.

"Trump and his three oldest children were sued in 2018 for their roles in promoting ACN from 2005 to 2015 with Trump suggesting people could invest in the company’s desktop video phone with little or no risk," writes Bloomberg's Erik Larson. "The service was quickly eclipsed with the advent of smartphones and the plaintiffs claim they lost hundreds of thousands of dollars by putting their faith in the Trumps."

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