Currently, and shockingly, the possessions, liabilities, and other investments of the Federal Reserve are not opening to open public scrutiny nor to the scrutiny of just about anyone. No one beyond your circle of the Federal Reserve has any idea the amount of, and what make up, the current investment stock portfolio of the Federal Reserve is and how it’s doing. Here’s how Bernanke justified the limited scrutiny of the Federal Reserve. We have recently used additional steps to better inform the public about the programs we have instituted to combat the financial crisis. The Congress has recently discussed proposals to increase the audit authority of the federal government Accountability Office (GAO) within the Federal Reserve.
As you understand, the Government Reserve is subject to frequent reviews by the GAO already. The GAO has broad authority to audit our operations and functions. The Congress, however, purposefully–and for good reason–excluded from the scope of potential GAO reviews some highly sensitive areas, notably monetary policy deliberations and operations, including open market and discount window operations. In doing this, the Congress carefully well balanced the need for public accountability with the strong open public policy benefits that movement from maintaining a proper degree of independence for the central bank or investment company in the making and execution of financial policy.
Financial markets, in particular, likely would see a give of review power in these areas to the GAO as a serious weakening of monetary policy independence. Because GAO reviews may be initiated at the demand of members of Congress, reviews or the risk of reviews in these areas could be seen as efforts to try to influence monetary plan decisions.
A perceived loss of monetary policy self-reliance could raise doubts about future inflation, leading to higher long-term interest rates and reduced economic and financial stability. We will work with the Congress to provide the information it needs to oversee our activities effectively, in a way that will not compromise monetary plan independence yet. In other words, there’s already plenty of transparency and any more would make the Federal Reserve politicized. The Chariman concerns that if the Congress knew much too, they would try to influence monetary policy.
Keep in mind that the collection of the Federal Reserve is likely in the several trillions. Yet, the same Federal Reserve wants absolutely no sunshine on exactly the make up of this collection because they worry that too much sunshine might politicize their decision making process. That is a total red herring.
The Federal Reserve chairman and all the Governors are selected and their conditions are four years. The testimony, the Chairman gave it a regular event just. Of course, it is rather difficult to question an individual when you truly don’t know precisely what he’s doing. There’s already some politics strain on the Fed.
Yet, they may be a completely unbiased financial institution. The decisions of the Chairman and the board are final. Lacking corruption, removing any of them to the end of their terms is almost impossible prior. Sunshine influencing monetary policy is much more perception than reality. Sure, Congress can pontificate and bloviate. They can do this now.
- Sales and Trading
- 1- Know where you stand
- Section 80DDB: Income Tax Deduction for Treatment of Specified Diseases
- Financial system, credit, and micro-finance
- Long term bonds lost money 2 years, so it is possible for a connection to reduce money
- How will this investment help me achieve my personal and portfolio objectives
- Do we see evidence that the privileges of each of us are being equally protected
Frankly, most of them wouldn’t have the first idea what the numbers mean anyhow. The decisions of the Fed and its board are self-employed and final. Yet, transparency is critical. The Federal Reserve holds onto trillions of money investments. The lender literally handles and manipulates the amount of money supply.
Yet, the folks of this country have zero idea what’s happening. We don’t know how much is in the collection. We don’t know how it’s comprised. Near daily, the Federal Reserve manipulates the money supply by investing in securities. Yet, the general public doesn’t know. That’s neither open nor transparent. In fact, the Federal Reserve functions as monetarily MONARCH. Transparency would be the first step toward reducing its power, and that’s what this anti-transparency position is really all about.