All Posts Tagged With: "Market Stability"

New Fed Powers Plan Needs Careful Thought

Let Friday, early news about a plan to broadly expand the power of the Federal Reserve was released.  Evidently the plan will be formally announced in a speech by Treasury Secretary Paulson.

I’m a bit out of breath.

McGehee was the first I saw to make mention that something like this was seriously in the works.  He expressed some concern which I share.

Seeing some more details of the plan (in the Des Moines Register Saturday morning) gave me reason to sit back and think.  The plan calls for 3 regulators, essentially eliminates any distinction between banks and thrifts, and would make the Fed the “primary regulator of market stability”, overseeing all segments of the financial services industry.

And the Democrats love it.  That should …


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