Restrict the rights of the Fed?

Daring proposal to create a stable economic base for employment growth, consumer protection, discipline of Wall Street, ending of „too big to fail“ to prevent a new financial crisis. This is a bold title of the new bill introduced today in the U.S. Senate by Democrat Christopher Dodd, chairman of the Senate banking committee.

The normative act provides for drastic changes in this regulatory system, the largest economy in the world and has already managed to arouse criticism among analysts with regard to the inherent role of politicians in the future economic and financial activities of the country. The focus of the document, according to initial reactions to experts quoted by the Reuters and Bloomberg is a new position of the Federal Reserve.

The institution, headed by Ben Bernanke is expected to lose their regulatory functions over the banking sector. This activity will fall into the hands of the Administration planned regulation of financial institutions. Reform include limiting the functions of the Federal Reserve’s monetary policy fully to the United States. Additional pressure on Ben Bernanke will on the part of Congress. The new bill provides that Washington has more power and determination of the representatives in the Commission’s open market operations FOMC – an idea met strong resistance from professionals.

Finance