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Home Publications Blogs Beat the Press The NYT Doesn't Know the White House's Views on Fed Independence

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

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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.

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written by izzatzo, May 06, 2010 7:28
Ben Bernanke, what did you hide and when did you hide it?

We can't tell you, because if everyone knew, everyone would want it.

If everyone got what everyone wanted, we couldn't use signals to influence expectations.

We learned that from Greenspan. Never mean what you say or say what you mean, because once they figure out the signal, a few powerful market players could exploit it and leave nothing but crumbs for everyone else.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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