As you correctly noted below, the Fed's mission is to balance inflation and unemployment. His power to "not allow this and that" is, at best, very limited. Generally it takes an act of Congress (or the SEC) to do that. So it's not really fair to blame Bernanke for the lack of financial regulation on Wall Street.Originally Posted by Ikari
Are you suggesting that Bernanke is unaware of the Fed's mission? That saying "inflation and growth" was more than just a colloquial way of saying basically the same thing? I'm sure he's well aware that it's inflation and unemployment.Originally Posted by Ikari
This only holds merit if you can show that Goldman Sachs is somehow compromising the Fed's independence. The fact that he made some decisions that you imagine benefit Goldman Sachs is not sufficient evidence.Originally Posted by Ikari
Even if that's true, so what? Congress has the power to regulate the dollar, and they've chosen to outsource that power to the Fed. Nothing wrong or unconstitutional with that. It's similar to the way the President is commander-in-chief of the military, but he doesn't micromanage every soldier himself; he has chosen to outsource that power to the military command structure.Originally Posted by Ikari
Having a certain power under the Constitution doesn't mean that they need to constantly exercise that power. It's perfectly legitimate for them to say "We're going to create an agency so we don't have to do this ourselves."
Yes there is. It's a thinly-veiled attempt to dig up some dirt, so that congressmen can rant about how horrible the Fed is and how they could do a much better job, since they clearly know more about economics and finance than Bernanke does. That WILL compromise the Fed's integrity.Originally Posted by Ikari