Monday
Sep282009
World Bank President Advocates Empowered Treasury
Monday, September 28, 2009 at 4:36PM
John DuBois, University of New Mexico-Talk Radio News Service
World Bank President Robert Zoellick advocated providing the U.S. Treasury Department with more authority than the Federal Reserve in overseeing the U.S. financial system.
“It should not be a surprise that American democracy is hesitating about authorizing the Fed to supervise systemic banking risks as well as operate monetary policy,” Zoellick said during a speech Monday at Johns Hopkins University in Washington, D.C.
Zoellick noted that giving more power to the Treasury would provide more economic transparency since Congress and the public would be able to provide more effective oversight.
“The U.S. Congress was surprised to learn of the scope of the Federal Reserve’s authority to create funds, buy assets, devise global swap lines and make transactions outside the usual process for expending public monies,” Zoellick said.
World Bank President Robert Zoellick advocated providing the U.S. Treasury Department with more authority than the Federal Reserve in overseeing the U.S. financial system.
“It should not be a surprise that American democracy is hesitating about authorizing the Fed to supervise systemic banking risks as well as operate monetary policy,” Zoellick said during a speech Monday at Johns Hopkins University in Washington, D.C.
Zoellick noted that giving more power to the Treasury would provide more economic transparency since Congress and the public would be able to provide more effective oversight.
“The U.S. Congress was surprised to learn of the scope of the Federal Reserve’s authority to create funds, buy assets, devise global swap lines and make transactions outside the usual process for expending public monies,” Zoellick said.
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