The NYT Doesn't Know the White House's Views on Fed Independence

Print
Wednesday, 05 May 2010 20:57

The NYT told readers that the White House is opposed to an amendment to the financial reform bill by Senator Bernie Sanders that calls for an audit of the Federal Reserve Board because they: " view it as an encroachment on the central bank’s traditional independence." While this may be the real reason that the White House opposes the bill, there may also be other motives. For example, it is possible that the Fed disbursed funds from its emergency facilities in ways that would be embarrassing if more widely known.

The NYT only knows that the White House says. It does not know its true motives. It should have simply told readers that the White House "claims" that it views an audit as interfering with the Fed's independence.