The Fed-Treasury Accord: Maintaining Fed’s Independence

Tim Duy submits:

The Fed and Treasury released a joint statement yesterday afternoon that was lost amid the official release of the Geithner Plan (hat tip Across the Curve). Clearly, it reveals the concerns of the Federal Reserve that its expansive role in the crisis will eventually threaten monetary independence, and thus wants that right/privilege reasserted:

The Federal Reserve’s independence with regard to monetary policy is critical for ensuring that monetary policy decisions are made with regard only to the long-term economic welfare

of the nation.

Complete Story »
Go to Source

More Information: