12.09.2010

The Fed...has an image problem

No, the central bank is facing something closer to a crisis of legitimacy:

Asked if the central bank should be more accountable to Congress, left independent or abolished entirely, 39 percent said it should be held more accountable and 16 percent that it should be abolished. Only 37 percent favor the status quo.

I'm not saying that everyone who responded to the poll really understands the nature of The Fed, its history, and what an "independent central bank" even means.

But I think most people have an inkling of the dangers of concentrating significant power in the hands of the unelected, even if the legislative branch has some inputs into the system.