Should We Break Up the Fed?

Amar Bhide, a visiting scholar at the Kennedy School of Management at Harvard University wrote this op-ed in The Wall Street Journal entitled, “Let’s Break up the Fed.”

You may not agree with his hypothesis but the timeline he presents in the op-ed for how and why the Fed took on so much responsibility over the years is down right scary. I could not believe how many responsibilities were handed to the Fed over the years through different laws or acts. Amar may or may not have a point but what he addresses is the need for a debate, a conversation about the role of the Fed and other financial regulatory bodies. Should we consider breaking up the Fed? Is the Fed in danger? How is it any different from the institutions that were deemed too big to fail? It is certainly something we need to discuss as we begin a conversation in this country about regulatory reform.

Take a look at our interview earlier this morning.