New York Sun: Fed is panicking about oversight legislation

The Yellen Letter

From the New York Sun
Friday, November 20, 2015

Janet Yellen's astonishing letter to the speaker of the House, Paul Ryan, is a sign that the central bank is panicking over the fact that Congress is unhappy with the job the central bank has been doing. Mrs. Yellen's letter, sent also to the House minority leader, Nancy Pelosi, is a protest against a bill known as the Fed Oversight Reform and Modernization Act, which is nearing a vote in the House and would require the Fed to choose a rules for the formation of monetary policy and let the Congress and the public know what they are. ...

Why is Congress itching for more oversight of the Fed? The reason is that the Fed was culpable in the crisis of 2008. And there is a growing sense that errors by the Fed itself -- with quantitative easing and zero interest rates -- have retarded the recovery, turning the crisis into the Great Recession. The recession became a cruel jobs drought; the unemployment rate is still above the average through the whole generation of Bretton Woods; the employment participation rate is at a decades long low. ...

... For the complete commentary:

http://www.nysun.com/editorials/the-yellen-letter/89354/