Once again, you show everyone here at ET that you have no clue whatsoever. Before the so-called "Emergency Rate Cut" after Martin Luther King Day, Fed Funds were trading nearly 2 points ABOVE the yield on the 2-year Treasury Note! For the 1200th time, that is NOT PUMPING a ton of money into the system. As it is, Fed Funds (3.00%) are still trading a full point above the yield on the 2-year (1.91%), and they were actually trading at a point and a half OVER prior to Jan. 22nd when Fed Funds were at 3.5%. If anything, Bernanke has been extremely slow to "ease". Anyone hear of a "Coupan Pass" being orchestrated by the Fed lately??? Not me.
Not to argue on Greenspan's behalf. Scum. Certainly. However at least Greenspan made rate cuts against the backdrop of $250 gold, $30 oil, a record high dollar, 9/11 and the absolute devastation of U.S. equities. Now of course we know it was that prolonged shift to accommodative policy that caused all those afore mentioned markets to shift 180. The economic threat of 2001-2002 was much more bona fide deflation than 2008. Since Greenspan is no longer Chairman he can't be impeached. So I say hang 'im. Or maybe a showy multi crucifiction in the Capital Mall. Cramer and Steve Leisman right along side. Working poor can bring their kids along and tell the family âthis is what happens to men who cause pasta to break a buck fifty per pound.â
Perhaps you're too young to remember when Henry Gonzalez introduced an impeachment resolution against Volker. http://scholar.lib.vt.edu/theses/available/etd-0305100-180653/unrestricted/Ch7.pdf
You should read the document you posted, which is very cool by the way, and then try understand what I am saying. The Federal Reserve is about as federal as Federal Express. It is a PRIVATE CENTRAL BANK. It's 12 member banks, all of which are corporations and have private shareholders. Any impeachment proceedings are frivolous, and will serve no real purpose except to create a dog & pony show. To go further into it, you should check the readily public available info regarding the board of the Fed and the process by which its actions are decided. That's just in case you cannot get out of your head that the Federal Chairman has very little, if any, real power. Does the Fed Chairman have any equity stake in the Fed? No. So what makes you think he has any real power? Because Volker used to preach a high fed funds rate policy which were on course with the Fed's actions? Bottom line, it's just naive to think that one man would be given that much power for limited term and be put into the public spotlight.
I guess you're naive. doesn't matter if it's private or not - USA can abolish Fed reserve in one day. Of course, it will require mega crisis. And it's probably gonna be hapen - sooner or later. In its 100 year history Fed reserve has not shown any ability to manage crisises
Wasn't these so called Auctions a form of "Coupon Pass", another new fancy term? Banks used its high yield treasuries to bid for new round of liquidities; in process to switch for new lower yield treasuries.