A coming crackdown on Federal Reserve power?

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A coming crackdown on Federal Reserve power?

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This should be popular across the ideological spectrum

A coming crackdown on Federal Reserve power?

Critics want to water down the power of the New York Fed president.


By Jennifer Liberto

3/21/15 8:58 AM EDT

A move to shift power away from the New York Federal Reserve Bank is finding some powerful friends in Congress amid lingering worries that a key part of the central bank is too cozy with Wall Street.

Two Republicans running the banking committees have both said they plan to explore proposals from the outspoken, former Dallas Federal Reserve Bank President Richard Fisher that would roll back a long-standing provision that gives the president of the New York Federal Reserve Bank an automatic position as vice chairman of a powerful committee and weaken New York’s oversight of Wall Street banks.

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The politics may be ripe for chipping away at the power of the Federal Reserve, uniting liberals who want to crack down on Wall Street, Republicans who don’t like the Fed’s easy money policies and libertarians who are suspicious of the Fed altogether.

The move also reflects some regional rivalries within the Fed — the New York Federal Reserve Bank often overshadows other regional banks, and Fisher, known as a rabble rouser in Federal Reserve politics, has been lobbying for a change to the power structure.

Banking Chairman Richard Shelby (R-Ala.) and House Financial Services Jeb Hensarling (R-Texas) say they’re open to reducing the power of the New York Fed, and the move has the potential to appeal to Democrats who have been critical of the Fed, like Sen. Elizabeth Warren (D-Mass).

Read more: http://www.politico.com/story/2015/03/t ... 16267.html
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