Many people feel the Fed, which is largely independent of Congress and the President, is too
powerful. In fact, the Chairman of the Fed\'s Board of Governors has been called the second
most powerful person in the country. Do you think the Fed is too powerful? Should Congress
have more oversight of the Fed? Share your thoughts.
Original answers with references please
Solution
Yes, the Fed is too powerful. It works independently and also funds itself with the return it gets
from the bonds. Fed has a huge influence on the currency, it can boost or shrink the money
supply anytime using monetory instruments. Therefore, the Fed has too much power as it takes
its decisions itself without any approval from the government.
Fed does not maintains very good relationship with congress. Time and again, congress
representatives have said that Fed has confused its independence on monetary policy with
independence from their oversight. The congress should have more oversight on the Fed as too
much regulatory power which can lead to many problems in the future..
Many people feel the Fed, which is largely independent of Congress a.pdf
1. Many people feel the Fed, which is largely independent of Congress and the President, is too
powerful. In fact, the Chairman of the Fed's Board of Governors has been called the second
most powerful person in the country. Do you think the Fed is too powerful? Should Congress
have more oversight of the Fed? Share your thoughts.
Original answers with references please
Solution
Yes, the Fed is too powerful. It works independently and also funds itself with the return it gets
from the bonds. Fed has a huge influence on the currency, it can boost or shrink the money
supply anytime using monetory instruments. Therefore, the Fed has too much power as it takes
its decisions itself without any approval from the government.
Fed does not maintains very good relationship with congress. Time and again, congress
representatives have said that Fed has confused its independence on monetary policy with
independence from their oversight. The congress should have more oversight on the Fed as too
much regulatory power which can lead to many problems in the future.
