• 59 mins Huawei’s Fate In The Air
  • 4 hours Tesla Slashes Prices Again
  • 6 hours The Modern History Of Financial Entropy
  • 22 hours Italy’s Central Bank Embraces Sustainable Investing
  • 1 day Trump Lifts Metals Tariffs To Cool Simmering Trade War
  • 1 day Researchers Push To Limit Space Mining
  • 1 day Could China Start Dumping U.S. Treasury Bonds?
  • 2 days Is Winter Coming For HBO?
  • 2 days Rise Of EVs Signals Peak Gasoline
  • 3 days Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 3 days Gold Mining Stocks Stuck In Limbo
  • 4 days Executive Order Targets Huawei Over Espionage
  • 4 days Why Now May Be The Best Time Ever To Hold Gold
  • 5 days Fake News Sinks Shares In UK-Based Bank
  • 5 days De Beers To Build $468 Million Diamond Recovery Ship
  • 5 days Moody's: Turkey Faces Possible Credit Downgrade
  • 5 days Tesla's Solar Sales Are Slipping
  • 6 days Auto Industry To Get Temporary Tariff Relief
  • 6 days Welcome To The World’s Biggest Free Trade Area
  • 6 days Central Banks Are Stockpiling Gold At The Fastest Rate In Half A Decade
Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

  1. Home
  2. Markets
  3. Other

End of Fed Independence! House Financial Services Committee Sends Warning Letter to Yellen 'This is Unacceptable'

The Trump team wasted no time in telling Fed Chair Janet Yellen what is and is not acceptable.

Patrick McHenry, the vice chairman of the House financial services committee, sent Yellen a letter of admonishment regarding international negotiations the Fed conducts in secret, with no oversight.

One line stands out: "This is unacceptable". The preceding paragraph tears into the Fed's secret negotiations with foreign bureaucrats, "without transparency, accountability, or the authority to do so."


McHenry Warns Yellen - Letter Excerpts

"I am writing regarding the Federal Reserve's continued participation in international forums on financial regulation. Despite the clear message delivered by President Donald Trump in prioritizing America's interest in international negotiations, it appears that the Federal Reserve continues negotiating international regulatory standards for financial institutions among global bureaucrats in foreign lands without transparency, accountability, or the authority to do so."

Moreover, the letter seeks a comprehensive review of past agreements with the Financial Stability Board, Basel, and the International Association of Insurance Supervisors that "unfairly penalized the American financial system".

The letter blasts "secretive structures" and "opaque decision-making" processes of the Fed. The letter then finishes with a final warning:

"It is incumbent upon all regulators to support the U.S. economy, and scrutinize, international agreements that are killing American jobs. Accordingly, the Federal Reserve must cease all attempts to negotiate binding standards burdening American business until President Trump has had an opportunity to nominate and appoint officials that prioritize America's best interests."


Fed Independence is Over

The Fed's ability to conduct secret deals just ended. An "audit the Fed" initiative is likely on deck.

I confidently predict Janet Yellen will not last four years.

Will Trump pressure the IMF or attack the World Bank? Recall this Tweet from years past.

Trump Tweet

Things can get rather interesting in a hurry, especially with Trump threatening to label Germany, China, and Japan "currency manipulators".

For further discussion, please see Is Germany a Currency Manipulator? China? Arguably Yes, Under Bill Obama Signed: Full Blown Currency War on Deck.

 

Back to homepage

Leave a comment

Leave a comment