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Home Publications Blogs Beat the Press We Run the Risk of Political Interference Undermining Good Fed Policy

We Run the Risk of Political Interference Undermining Good Fed Policy

Friday, 26 August 2011 04:21

Morning Edition had a piece on the Federal Reserve Board's annual meeting at Jackson Hole. The segment included a comment from an analyst (link not available yet) saying that we are seeing the risk of political interference undermining good Fed policy.

This would have been a great comedic comment, if it were not said in complete earnestness. This is sort of like worrying that the performance of the Federal Emergency Management Agency would deteriorate after the departure of Michale Brown, except the damage caused by Brown's incompetence was trivial compared to the enormous suffering that has resulted from the Fed's incompetence.

The Fed (i.e. Alan Greenspan and his then sidekick Ben Bernanke) sat back and let the housing bubble grow to ever more dangerous levels. It possessed all the tools necessary to rein it in but chose to do nothing. This is like a school bus driver drunkenly swerving into oncoming traffic and killing all aboard. Incredibly, in Federal Reserve Board land, the driver comes to work the next day and no one says anything.

Yeah, we should worry that it gets worse than this! 

Comments (3)Add Comment
fed disinfectant
written by frankenduf, August 26, 2011 10:09
the irony is that the intentional sovereignty of the fed is part of the problem- we need sunshine laws to expose the machinations of their policies- i mean, we are a democracy, right?
written by Jim In Panama, August 26, 2011 10:12
Yeah ,but the bus driver was drunk so it wasn't his fault. Congress should form a committee to question both Bernanke and Greenspan under oath to determine their blood alcohol levels between 1993 and 2006.
written by johnson, August 26, 2011 10:25
More like killing almost everyone then making those that survived pay for the accident.

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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.