Tuesday, September 4, 2012

A growing fear of Fed independence.

A quote from this Reuters article.

"I do fear for it a bit if the election comes out that way, especially if some of the more radical voices, that happen to be Republican voices nowadays, get reelected," said Alan Blinder, Princeton economics professor and a former Fed vice chairman, adding that historically opposition to the U.S. central bank had come predominately from the left.

"There's a lot of hostility," said Blinder, who was appointed to the Fed by former president Bill Clinton.

My fear in this trend is that the opposition grows and instead simply abolishing the Fed and moving towards a market-based system that politicians will instead use the sentiment to grab further control.

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