Friday, April 27, 2012

Rep. Brady's Fed Reform Creates More Problems Than Solutions

TX Representative Kevin Brady introduced a bill named the Sound Dollar Act. It's a very dangerous bill that actually expands Fed powers.
...the Sound Dollar Act actually gives more control and discretion to the Fed governors and presidents as well as explicitly expanding their powers over many more markets than just government securities. Furthermore, the legislative process that will dictate the final language of the bill could potentially result in even further unprecedented responsibilities granted to the Federal Reserve. In establishing price stability as the single mandate, the Sound Dollar Act requires the Fed to set and evaluate metrics based on the prices and expected returns of residential, commercial and agricultural real estate, all commodities and bonds (municipal, government, and corporate).... The Sound Dollar Act is simply not the way to push back on the Fed's continued destructive policies.
Read the rest here
Real Clear Markets 

Judy Morris,
Blogger, THL
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