Remember Alan Greenspan? Super old dude who ran the Federal Reserve before the slightly less old bearded dude who ran the Fed before the slightly older woman who does now? Funny thing about him: He led the central bank for almost 19 years and five terms. Well, according to some eggheads who’ve been looking into things, that’s exactly 12 years and four terms too long. Also, contra former Wharton School Dean Patrick Harker, they do not care a whit about what bankers from Souderton, Camp Hill or New Tripoli. Frankly, they don’t care what any bankers think.
The linchpin of the overhaul is bringing the 12 quasi-private regional Fed banks fully into government. The paper’s authors also repeated calls for bankers to be removed from regional Fed bank boards of directors, while proposing nonrenewable terms for top central bank officials and greater government oversight over Fed actions….
A number of regional Fed bank leaders have pushed back at being made fully public. In May, New York Fed President William Dudley said “the current arrangements are actually working quite well, both in terms of preserving the Federal Reserve’s independence with respect to the conduct of monetary policy and actually leading to pretty, you know, successful outcomes….”
This, too, has drawn pushback from some on the Fed. Philadelphia Fed leader Patrick Harker said in July that “the banker from a small town in Pennsylvania provides incredibly important insight,” and he wants people like that on his board.