Congress’ Proof of the Fed’s Lack of Importance

Congress’ Proof of the Fed’s Lack of Importance

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.