Fed View on Consumer Protection Gets Murky

[Dover]

Source: Amercian Banker

WASHINGTON — Though the Federal Reserve Board is clearly opposed to handing off its consumer protection powers to a new agency, its proposed alternative has left many confused and others saying it would accomplish little.

In separate appearances before House panels last month, Fed Vice Chairman Donald Kohn and Elizabeth Duke, a governor, said Congress could explicitly mandate consumer protection as a core mission of the central bank instead of creating a new agency.

The comments were sufficiently vague so that, to some, it sounded as though the Fed was proposing to expand its dual mandate of promoting price stability and maximizing employment to include consumer protection — an idea many saw as unworkable.

"They already have a problem following the dual mandate because they tend to shift from one thing to the other," said Allan Meltzer, a professor at Carnegie Mellon University and a noted Fed historian. "You put a third thing in there, and they have another reason for not doing what they're supposed to do."

Many said that, adding to the dual mandate, which Congress enacted in 1978, makes no sense...cont'd



Read more: http://www.americanbanker.com/issues/174_152/fed_view_on_consumer_protection_gets_murky-1000789-1.html

[ixion]

1. I don't know... by their actions, it's pretty clear

they think of the consumer as a purchasing machine, and don't really give a rat's ass if what a consumer purchases is quality or crap, as long as their racking up those high-interest CC chargees.

So they can all take a flying f**k at the moon, for all I care. :grr:

[LeftHandPath]

2. Screw the Fed and protect yourself...

Its easy.

Dont keep your money in any of the 'too big to fail' banks. Zero. Use a local credit union instead.

Dont invest any of your money in the fraudulent stock market. Invest in cash, a safe, and a safe deposit box.

Shop locally, support local farmers and merchants and stay out of big box stores.

Go underground, and keep your transactions off the grid.