What have you always wondered about the economy? Tell us

Why the New York Fed is in the hot seat

Stan Alcorn Nov 19, 2014
HTML EMBED:
COPY

Why the New York Fed is in the hot seat

Stan Alcorn Nov 19, 2014
HTML EMBED:
COPY

Out of the 12 banks in the Federal Reserve system, only New York has a permanent spot on the interest-rate-setting Federal Open Market Committee.

Only New York oversees the critical Wall Street institutions like Goldman Sachs, and only New York is under congressional  scrutiny this week for its cozy relationship with the institutions it is supposed to regulate. 

After This American Life and ProPublica published secret recordings that seemed to demonstrate regulators deferring to the institutions they regulate, Sen. Sherrod Brown of Ohio called for hearings, which will take place Friday. Brown plans to hold N.Y. Fed President William Dudley accountable, and to push him to prioritize regulation as highly as interest rates.

Meanwhile, Sen. Jack Reed of Rhode Island has put forward legislation that would change how the next William Dudley would be selected. Reed would take the decision out of the hands of board members – mainly business people – and put it in the hands of the president. Massachusetts Institute of Technology economist Simon Johnson says that’s exactly the right approach. 

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.