Geithner Defends Plans To Give Fed More Power

The inept Federal Reserve who's easy money, easy regulation policy brought us to where we are today wants more powers. Geithner is a former Fed Governor, he is willing to give to the Fed as much power as they want. I'm with Ron Paul the Fed needs to be audited, it has way too much power, we certainly do not need to give them anymore.-Lou

Geithner Defends Plans To Give Fed More Power

Treasury Secretary Timothy Geithner defended the administration’s proposal to give the Federal Reserve increased powers in his first public tussle with lawmakers skeptical whether the central bank is up to the job.Advocating for President Barack Obama’s regulatory overhaul on Capitol Hill, the Treasury chief faced repeated questions from senators who cited previous regulatory failures at the Fed and potential conflicts with its monetary-policy duties.

“The Federal Reserve is best positioned” to oversee the biggest financial companies, Geithner told the Senate Banking Committee in Washington, adding that the Obama plan gives the Fed only “modest additional authority.” Most central banks around the world have some responsibility for monitoring systemic risks, he said.

Dodd, a Connecticut Democrat, quoted one critic’s view that giving the central bank more power was like awarding a son a “bigger, faster car right after he crashed the family station wagon.” He added that he hadn’t made a conclusion on the issue.

Geithner said that the Fed has “greater knowledge and feel for broader market developments” than any other U.S. banking agency. He added that giving those powers to a council of regulators wouldn’t work.

“You don’t convene a committee to put out a fire,” he said.The president’s announcement yesterday marks the beginning of what promises to be a political battle that’s likely to alter the administration plan, with some lawmakers opposing any expansion of the Fed’s power. Obama, who has called the “sweeping overhaul” of regulation one of his top domestic priorities, said he wants to sign legislation by year-end.