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Even Congress Is Getting Concerned

Guess who is moving to limit the Adminstration's power? Congress. And more to the point, a Democratic Congress at that. Separation of powers is working.

The latest target of Congressional ire, or at least skepticism, is the Fed. The concern is that this body has been doing too much of the "dirty work" of this (and the previous) Administration. The recent testimony of Bank of America's Ken Lewis underscore these fears.

Up through Paul Volcker, the Fed was always fiercely independent of the Executive Branch.  As such, it was practically a "fourth branch" of government. Under Alan Greenspan and his "Apprentice," the Fed has become a handmaiden of the Executive Branch (regardless of party). Far from restraining the follies of say, the Treasury, it exacerbates them.

Congress has rightly picked up on this new "alliance," and the fact that the Fed is no longer an additional check on the power of the President (as it was during the time of say, Jimmy Carter). Instead, the Fed has become a major catspaw of the Executive Brancht. In curbing the power of the Fed, therefore, Congress is really curbing the power of the President.