by Philippe Gastonne, The Daily Bell:
A Republican Congressman wants to strip the Federal Reserve Bank of New York of one of its key powers, and it could have a big impact on when and how the Fed makes its next rate decision. Next Wednesday, in the House Financial Services Committee Monetary Policy and Trade Subcommittee hearing on Federal Reserve reform, it is expected Michigan Republican Bill Huizenga will pitch legislation to kill the ‘permanent’ status granted to the New York Fed on the Federal Reserve System’s Federal Open Market Committee (FOMC). The FOMC is the Fed committee that makes key monetary policy and regulatory recommendations within Federal Reserve System. Presidents of the other eleven Federal Reserve banks rotate in and out of the remaining four FOMC slots. And for some, the New York Fed’s elevated status within the FOMC has been a source of frustration. – Business Insider, July 17, 2015
We have to wonder what Michigan Republican Rep. Bill Huizenga is thinking. His effort to remove the New York Fed’s permanent position on the Federal Open Market Committee is probably doomed to failure. It will accomplish almost nothing of consequence in the unlikely event it succeeds. Give him credit for trying, though.
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