Barney Frank: Let’s pack the Fed with doves
Here is Barney Frank at yesterday’s House Financial Services hearing:
I had a study done. Ninety percent of Federal Open Market Committee [dissents] are from regional bank presidents and 90 percent of the 90 percent are for higher interest rates.
Those are inappropriately placed private businessmen, or women, occasionally, picked by other private businessmen, and occasionally women, and they should not be setting public policy.
I don’t care that the Fed rejected what the Treasury said. That may be a nice discussion among gentlemen. The Fed will not reject it when we, I promise you, next year, take up legislatively the issue. And I think it’s very clear. You should not have private citizens like the presidents of the regional banks voting on policy. And I guarantee that will happen.
Me: Along with the Fed audit bill, it is clear Congress wants to have more influence over the Fed. This, right at the time when global financial markets will have to remain confident America will not inflate its way out of its debt.