Senate Has Other Ideas for the Fed

OK, so now it looks like the Federal Reserve may not have quite as many powers as originally thought, provided some Senators get their way.An article in the Washington Post cites a bill being drafted by the Senate Banking Committee could give the Fed fewer authorities than the White House said it would earlier this summer. The writer says Senators on both sides of the aisle simply do not have the confidence in the agency, given its role in the financial crisis.

"Some lawmakers oppose giving the Fed responsibility for monitoring systemic risk in the economy, as proposed by the administration, favoring instead vesting that authority with a council of regulators," notes the article.

The proposal also calls for a further streamlining of the financial regulatory regime, beyond eliminating just one agency as the White House suggested.

For the entire article, see Senate May Narrow Proposed Regulatory Role for Fed.