Furthermore, the outsized role the Fed took on during the financial crisis — making emergency loans around the world and buying up over $1 trillion in mortgage securities — might have stepped on a few toes in Congress.
“By having veered into that in the financial crisis … they have gone beyond their mandate, and the implication of that is Congress got more involved,” said Merk. “Because Congress doesn’t like it when somebody meddles on their turf.”
The Fed has long billed itself as immune from politics, but the central bank has clearly felt the heat in recent months. The bank tacitly acknowledged the need to respond to public criticism when it announced Bernanke would begin holding regular press conferences with the media — a first for any Fed chairman.
But even if the Fed were to shake of the political pressure and embark on a third round of fiscal intervention, it would first need to figure out how to get out of QE2.
http://thehill.com/business-a-lobbying/164551-bernanke-faces-a-crucial-decision-as-economy-teetersI know that it is being said that Goolsbee, top financial budgetary advisor, is leaving because he doesn't want to lose tenure, but I think it is because of QE3. The economic picture is dismal, and per Max Keiser "As many have predicted, more QE coming. Current commodities pullback meant to scare people (with FAKE DEflation) into wanting more toxic fiat debt spills from the Fed and REAL INflation" this is not going to help....
http://maxkeiser.com/2011/05/13/as-many-have-predicted-more-qe-coming-current-commodities-pullback-meant-to-scare-people-with-fake-deflation-into-wanting-more-toxic-fiat-debt-spills-from-the-fed/
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