It would be dangerous to conclude from Congressional criticism of the Fed after QE2 that Congress or some other entity should determine the Fed's role in future financial crises.
The second source of criticism of the Fed arises from the fact that it did act independently of Congress in unusual and ad hoc ways, including balance sheet expansion, TARP advocacy, and accommodation of insurance company AIG during the Bear Stearns crisis, in order to deal with the exigencies of a full blown financial disaster.
In recent months, the noisiest and nastiest criticism of the Fed
has come from Wall Street.
In spite of the criticism of the Fed
over the past four months, the policy of gradually raising interest rates has steered the economy away from the region of superheated growth back to equilibrium growth near 3%," reported Michael Evans.
The governor, true to form, peppered the discussion of his agenda with criticism of the feds
, noting that state battles over immigration - and Arizona-style legislation - will mean little, he said, until the federal government fulfills its responsibilities to secure the border.