Rep. Ron Paul (R-Texas) said Thursday he will push to examine the Federal Reserve's monetary policy decisions if he takes control of the congressional subcommittee that oversees the central bank. "I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, told Reuters. He's expected to get the chairmanship.
"Quantitative easing" doesn't mean more credit for Main Street. The Federal Reserve's open-market committee (FOMC) is widely expected to try a second dose of quantitative easing when they meet again in early November. Dozens of financial reporters have described this as an effort to goose the economy, but how that is supposed to work is even more unclear than usual.
The Federal Reserve and other central banks must protect their ability to make key economic decisions free from political interference, Fed Chairman Ben Bernanke said Wednesday. "Thus political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation," he said.