While the Fed could use guardrails, I wonder if Dr. Hoenig is overestimating Congress's ability not only to understand truly financial crises, but also the ability to oversee the Fed under these proposed new rules in a non-partisan way?
A really interesting idea. The politicisation of the Fed, and perhaps other central banks, has been at the heart of mis-steps that are on the way to creating political turmoil for the coming decade. It feels like the horse has already bolted.
While the Fed could use guardrails, I wonder if Dr. Hoenig is overestimating Congress's ability not only to understand truly financial crises, but also the ability to oversee the Fed under these proposed new rules in a non-partisan way?
A really interesting idea. The politicisation of the Fed, and perhaps other central banks, has been at the heart of mis-steps that are on the way to creating political turmoil for the coming decade. It feels like the horse has already bolted.