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Congress’ Proof of the Fed’s Lack of Importance

September 12, 2017

According to Janet Yellen and the media that covers everything she does, the Federal Reserve is “very important.” I disagree and have posted some blogs expressing my opinion [see my blog posted July 11, 2017]. Now, I want to offer some proof and for what it is worth, I will use Congress to develop my hypothesis. This blog was precipitated by last week’s announcement by the Vice Chairman of the Fed, Stanley Fischer, that he would resign in about a month.

FACT: Current law provides for seven governors on the Federal Reserve Board
FACT: There were five governors when Mr. Trump became president, inheriting two vacancies from President Obama
FACT: There was one resignation after Mr. Trump became president, so presently there are four governors
FACT: After Mr. Fischer resigns there will be three governors, the lowest number in the Fed’s history
FACT: The last time there was a full Board of seven governors was 2013
FACT: It would seem that matters of the grave importance that the Fed handles should have the full complement of the Fed board to provide input, opinion, analysis and direction
FACT: Not having a full board means that decisions are made without the ability to discuss and consider additional views and alternatives that might have been raised by the missing people
CONCLUSION: Congress’ inaction, neglect and/or disregard proves the lack of the importance of the Federal Reserve Board of Governors

Tell me I am wrong and if you cannot, then perhaps I am right.

Now if Congress is wrong about this, perhaps it will also be wrong about their specious “tax reform” initiatives that will be starting shortly.

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