• 385 days Could Crypto Overtake Traditional Investment?
  • 390 days Americans Still Quitting Jobs At Record Pace
  • 392 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 395 days Is The Dollar Too Strong?
  • 395 days Big Tech Disappoints Investors on Earnings Calls
  • 396 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 398 days China Is Quietly Trying To Distance Itself From Russia
  • 398 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 402 days Crypto Investors Won Big In 2021
  • 402 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 403 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 405 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 406 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 409 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 410 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 410 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 412 days Are NFTs About To Take Over Gaming?
  • 413 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 416 days What’s Causing Inflation In The United States?
  • 417 days Intel Joins Russian Exodus as Chip Shortage Digs In
  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