The War with the Fed Begins
I am writing regarding the Federal Reserve’s continued participation in internal forums on financial regulation. Despite the clear Message delivered by President Donal Trump in prioritizing America’s interests in international negotiations, it appears the Federal Reserve continues negotiating international regulatory standards for financial institutions among global bureaucrats in foreign lands without transparency, accountability or the authority to do so.
This is unacceptable.
The secretive structures of these international forums must also be reevaluated. Agreements like the Basel III Accords were negotiated and agreed to by the Federal Reserve with little notice to the American public, and were the result of an opaque decision-making process.
I have exactly zero sympathy for the Federal Reserve. They have spent 40 years sandbagging US wages and pretending that high unemployment was full employment; deliberately fueling the stock market when it would have fallen otherwise, and when elected parts of the government tried to improve the wages of ordinary people beyond what the Fed thought was acceptable, the Fed would undo what they had done.
Trump and Republicans are not the ones I’d want taking on the Fed, but the Democrats refused to do it. Nor do I agree with McHenry on what the Fed has done wrong (higher capital requirements are good), but I do agree that the Fed has repeatedly overstepped itself and needs to be brought to heel. It’s a pity it will be done by these people for these reasons, but c’est la vie.
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