Wednesday, September 21, 2011

Nothing Wrong With That

I don't agree with the substance, but I don't think there's anything wrong with Republicans sending the Fed a sternly worded letter. If you believe that central bank independence is important, then you don't want the president being able to boss the Fed chairman around and similarly you wouldn't want Congress trying to goad the Fed into one action or another through legislation. But there's nothing wrong with policymakers expressing their opinions about what the Fed is doing.