End of Fed Independence! House Financial Services Committee Sends Warning Letter to Yellen “This is Unacceptable”!

Prabhat sends me another link which is really explosive.

Yellen is sent this fuming letter by Patrick McHenry, the vice chairman of the House financial services committee:

The Trump team wasted no time in telling Fed Chair Janet Yellen what is and is not acceptable.

Patrick McHenry, the vice chairman of the House financial services committee, sent Yellen a letter of admonishment regarding international negotiations the Fed conducts in secret, with no oversight.

One line stands out: “This is unacceptable”. The preceding paragraph tears into the Fed’s secret negotiations with foreign bureaucrats, “without transparency, accountability, or the authority to do so.”

“I am writing regarding the Federal Reserve’s continued participation in international forums on financial regulation. Despite the clear message delivered by President Donald Trump in prioritizing America’s interest in international negotiations, it appears that the Federal Reserve continues negotiating international regulatory standards for financial institutions among global bureaucrats in foreign lands without transparency, accountability, or the authority to do so.”

Moreover, the letter seeks a comprehensive review of past agreements with the Financial Stability Board, Basel, and the International Association of Insurance Supervisors that “unfairly penalized the American financial system”.

The letter blasts “secretive structures” and “opaque decision-making” processes of the Fed. The letter then finishes with a final warning:

“It is incumbent upon all regulators to support the U.S. economy, and scrutinize, international agreements that are killing American jobs. Accordingly, the Federal Reserve must cease all attempts to negotiate binding standards burdening American business until President Trump has had an opportunity to nominate and appoint officials that prioritize America’s best interests.”

Wow, call that some direct attack on the central bank.

Though, this is so much better than what happens elsewhere where there are mere conspiracy theories. Here we clearly know what the agenda is and there is no room for any speculation..

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One Response to “End of Fed Independence! House Financial Services Committee Sends Warning Letter to Yellen “This is Unacceptable”!”

  1. MS Says:

    When you say “we clearly know what the agenda is”, I hope you mean it literally and strongly.

    For me, the only agenda that Trump seems to have is to help his rich hedge-fund friends inside and outside the cabinet. Arm-twisting the Fed on every policy is certainly on the agenda.

    And he certainly knows how to use the “American jobs” line to good effect. It won him an election and gives him millions of rabid supporters.

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