Don’t fight the Fed. That’s what they say on Wall Street. And for good reason. While technically accountable to Congress, the Federal Reserve’s monetary policy decisions do not require approval from “the president or anyone else”, as the Fed boldly states on their website.
The Fed’s culture of omnipotence is evident in former Chairman Alan Greenspan’s reply when asked about the Fed’s relationship with the president. “Quite frankly it does not matter who is president as far as the Fed is concerned. There are no other agencies that can overrule the action we take.”[Read more...]