Former Goldman Sachs head, and now Treasury Secretary, Henry Paulson wants Congress to give the Federal Reserve drastically expanded regulatory powers. According to The Wall Street Journal,
…it is naive to expect the Fed to be an omniscient predictor of financial trends. It is even more naive to think that the Fed would have the political will, and clout, to neutralize potentially destabilizing forces before they cause financial havoc.
I am very leery of letting the Fed do more. I think Congress ought to pass more stringent regulatory rules that the current Fed can then enforce, rather than giving the Fed more power. In effect, doing so gives the Fed more power, but through legislative means rather than fully granting them more authority.
They screw up the economy enough with the power they have!
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