Congress Wary of Fed's Growing Power

Senators full of criticisms for the Fed

(NEWSER) - Ben Bernanke was forced to play defense in his confirmation hearing today, as the Senate Banking Committee rained down criticism on the Fed and its chairman. Some, like Chris Dodd, signaled approval of Bernanke’s leadership but not of the Fed’s bid for increased regulatory control. “Why should I give an institution that failed that type of exclusive authority?” demanded Dodd. Republicans like Richard Shelby were even less kind, attacking Bernanke’s actions directly. More»

Bernanke & Co. run into populist ire over Wall St bailouts, unemployment

(NEWSER) - When Fed Chair Ben Bernanke goes before Congress next month seeking a second term, he'll run straight into cantankerous legislators riding a tide of populist rage over the Wall Street bailout and high unemployment. While the Fed acted decisively to bail out the financial markets last year, it's widely viewed as having ignored the broader economy—and Congress is looking for some serious oversight. More»

Rate cuts, other moves must eventually be reversed

(NEWSER) - In his first term as Fed chairman, Ben Bernanke played the role of savior, lending hundreds of billions to banks and businesses, backing the mortgage market, and cutting interest rates. In his second, Bernanke will have to turn “strict disciplinarian,” reversing earlier moves to respond to a massive deficit, writes Edmund Andrews in the New York Times. That's going to be both difficult and unpopular and risks putting the Fed “on a collision course” with the White House. More»

(NEWSER) - Ben Bernanke can expect a standing ovation from economists at a Fed retreat in Jackson Hole today—for the financial establishment, the Fed chairman is a superhero, hailed for his aggressive, unprecedented actions to stem the worst crisis in generations. Yet on Capitol Hill he's far less popular, and the White House still isn't showing its cards about a second term. For the New York Times, Bernanke is fighting two battles: one economic, one political. More»

(NEWSER) - The heat is apparently getting to Tim Geithner. At a meeting last week with high-level financial regulators, the treasury secretary indulged in a potty-mouthed diatribe about delays in the administration's highly touted plan to overhaul the regulatory system, declaring, "enough is enough," the Wall Street Journal reports. Attendees included Ben Bernanke, FDIC chair Sheila Bair, and SEC chair Mary Schapiro. More»