Federal Reserve is No Longer Beyond Influence
The Fed should go back to being steady and independent
The Federal Reserve has long been viewed as the most independent and steady of the federal bureaucracies; the gold standard, if you will, of bureaucratic operations. However, observers today have cause to question that reputation and many are.
The Fed's role today is as important as it has ever been.
That's why its departure from past traditions is so troubling. Some have taken issue with how the Fed has approached monetary policy and others with how it has handled regulatory efforts. Whatever the issue the source of the complaint is the same: the steady hand and fact-based approach once revered has been replaced with something else that evokes considerably less confidence.
The Fed's recent debit card swipe fee reform rulemaking is a perfect example of how the once apolitical data-driven Fed is no longer beyond influence.
Swipe fee reform was intended to fix the broken debit market, a move that will help
Swipe fee reform required the Federal Reserve to determine if the fees banks and debit card networks charge merchants were "reasonable and proportional" to the cost of processing debit card transaction. If they were found not to be, the Fed was instructed to determine a rate that was.
In December the Federal Reserve found that the average swipe fee paid by merchants was
Retailers panned this outcome, banks applauded it, but the process should concern everyone.
The once steady Fed is now quite malleable, bending to appeal to those it's tasked with regulating. The Federal Reserve is best when it is as it once was, steady and independent, a far cry from what it is today.
Available at Amazon.com:
- GDP Up: Will Recession Fear Fade as Economy Shows Signs of Life?
- Measuring Economic Progress
- Great Recession Means a Diminished American Dream for Young Adults
- Inflation Could Help Flagging Economy
- Home Economics
- Skills Gap Plagues American Manufacturing Industry
- Beige Book Says Economic Recovery Still Slow. What Now?
- The Ranks of the Underemployed Continue to Grow
- More Americans Falling Behind On Mortgages
- Fed Created A Recipe for Disaster in Housing Market
- The Fed Caves to the Whims of Congress
- Federal Reserve is No Longer Beyond Influence
- Blame Bernanke and Federal Reserve for Economic Crisis
- Fed Saved Economy but Did Little to Rein in the 1 Percent
- For Better or Worse, Fed Is Just Doing Its Job
- Flat-Tax Fraud and Why America Needs a Truly Progressive Tax
- The Broken Contract: Inequality and American Decline
- The Wisdom of Retrenchment: America Must Cut Back to Move Forward
- Shortchanging Our Paychecks
- Unemployment Drops Sharply in October
- Recession Fears Fade But Euro Debt Crisis Still Looms
- Haves and Have-Nots: Cities with Highest and Lowest Poverty Rates
- Is the Economy Better Off Without Washington?
- How to Rein In Healthcare Costs
- Why Mortgage Rates Are Rising
- Industry Must Do its Part to Educate Workforce of the Future
- Jobs Council Issues Growth Proposals, Acknowledges Dysfunction
- September Jobs Report a Pleasant Surprise
- US Economic Woes Put China in the Political Crosshairs
- A Devalued Renminbi Makes Wealthier Americans
- Sluggish America Can Still Be a World Leader
- Behind Europe's Debt Crisis Lurks Another Wall Street Bailout
- United States - South Korea Trade Deal Win-Win for Jobs and Economy
- Obama's Trade Deal Delays Have Cost Jobs
- Reconsider Dodd-Frank, Piece by Piece
- Dodd-Frank Brings Transparency to Financial Industry
- Dodd-Frank is More Right than Wrong
- Dodd-Frank Is a Counterproductive Mess
- Repealing Dodd-Frank Would Put the Economy in Danger
- A People's History of the Great Recession
- Job Destroyers Don't Deserve Tax Holiday
- What the Recession Has Done to the Rich
- Pot Calls Kettle Risky: The Wit and Wisdom of Tim Geithner
- New Layoffs Are Harbingers of Broader Economic Changes
- Is Obama's National Infrastructure Bank the Answer on Jobs?
- We Are In a Modern-Day Depression
- Dunkin' Donuts, McDonald's Franchises Warn of Job Cuts
- Despite High Unemployment, Millions of Job Openings
- How Renters Could Save the Housing Market
- How Low-ball Appraisals Are Limiting Housing Recovery
- The Moral Question
- Rise of the Renminbi as International Currency
- United States Woos Foreign Shoppers to Boost Sagging American Economy
- How to Create More Jobs by Lowering Wages: Texas and America
- 15 Stunning Statistics About the Jobs Market
- Training Unemployed for Specific Jobs Could Solve Many Problems
- Housing Slump Will Hurt Economies Well Into Future
- Can the Government Help the Housing Market?
- Are American Consumers Relapsing Into Debt Addiction?
- Obama Deficit Plan Could Derail Hopes for Super Committee Success
- Raising Retirement Age: Reflection of Our Evolving Economy
- Why Math and Science Education Means More Jobs
- A Good Fight
- America's Government Contracting Bonanza Bilks Taxpayers
- Two Cheers and One Jeer for the American Jobs Act
- Obama Jobs Plan Seems to Get a Boost From CBO Chief
- Will Obama's Jobs Plan Help Small Business Hire More?
- More Americans in Poverty Than Ever Before
- Why Consumers Aren't Spending
- Republicans Keep Helping Wall Street and Banks Over Main Street
- 5 Political Lessons of the Economic Downturn
- First Medicare, Now Paul Ryan Tackles Tax Code
- GOP Economic Plan Unlikely to Find Much Common Ground With Dems
- With Poverty on the Rise, This is No Time to Slash the Safety Net
- Vote on Disputed Trade Bill Could Be Hitched to Jobs Retraining
- Obama Vows to Do Away with Millionaire Tax Cuts and Reduce Deficit
- Has the Housing Market Finally Found Its Footing?
- Fed May 'Twist' Balance Sheet to Promote Recovery
- In Jobs Speech, Obama Passes the Buck to Congress
- Refinancing Out of Reach for Many Americans
- Self-employed Americans Down by 2.1 Million
- Government Needs to Help Job Creators and Middle Class Consumers
- Back to School and Deeper in Debt
Available at Amazon.com:
Federal Reserve is No Longer Beyond Influence | Politics
(c) 2011 U.S. News & World Report