I would contend that any delegation of Congressional authority must be subject to some form of Congressional oversight.
In theory, a very laudable stance. In application, it amounts to micromanagement and merely bloats government bureaucracy even further.
I do agree that Congress has delegated too much authority to the Executive Branch, and is derelict in its Constitutional duty by not performing more oversight.
I would also contend that open-market operations and the dictation of interest rates to private businesses are authorities not delegated to the US government.
If the Federal Reserve and FOMC "dictated" interest rates to other institutions, you would have a point. However, the only rate the Federal Reserve sets explicitly is the discount rate at which it lends directly to banks to cover reserve requirements. It uses open market operations (buying and selling securities) to set a target federal funds rate, which is the interest rate banks charge when lending to another bank from their Federal Reserve account. The federal funds rate is generally set lower than the discount rate, and is approximately 300 basis points below the prime interest rate nominally charged by banks to their most creditworthy borrowers, but actually fluctuates in a range around the target rate set by the Federal Open Market Committee.
Open market operations and setting interest rates to its own customers are normal activities of any bank, and the federal government's capacity to charter a bank has been deemed Constitutional since
McCulloch v Maryland in 1819.
Interestingly, there is an analogy to be drawn between the Second Bank of the United States (the focus of
McCulloch) and the Federal Reserve.
The concerns regarding the Fed's power and influence today stem largely from its willingness to facilitate government fiscal policy--Greenspan's loose money policies helped fuel politically expeditious economic bubbles, and Bernanke's magic printing press is funding the greatest expansion of deficit spending since World War II. The disturbing display of that facilitation is its arguably corrupt and corrosive involvement in the shotgun marriage between BofA and Merrill Lynch after the latter was overextended because of its derivatives.
The
McCulloch case was triggered by rampant corruption and lax banking practices at the Second Bank of the United States, producing a real estate bubble and subsequent crash in the Panic of 1819, and Maryland's attempt at restricting the Bank's activities by taxing bank notes of banks not chartered in Maryland.