It seems the Federal Reserve is coming out in full force to maintain their current power. What are they fighting against?
Senate Banking Committee Chairman Christopher Dodd and Barney Frank, his House counterpart, have said they may change how Fed presidents are chosen or curb their power. Presidents aren’t appointed by Congress and are partly selected by banks, which lawmakers say share blame for the financial crisis.
Why is Congress trying to change the way regional Fed Presidents are selected? Because they are nominated and come from private boards and commercial banks.
Federal Reserve regional Presidents are only approved by the Fed. governors.
For example, there is a former Goldman Sachs executive on the New York Fed. board.
In response, the Fed. regional banks are claiming if the nomination/seating procedure is changed that will magically cause massive inflation and affect their ability to be independent and monitor monetary policy.