Obama's New Regulatory Plan: Cheese It, It's The Fed!

Do we want the Federal Reserve to have more power?

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Quick initial thoughts on the Obama administration's financial regulatory plan: It would give the Federal Reserve new powers to supervise "systemically significant" institutions--ie, players who are "too big to fail." The Fed would also become part of a council of regulators that would monitor systemic risk throughout the entire financial system.

But it was the Fed's lack of foresight that partially got us into this mess to begin with.  How is it a solution to give the Fed more responsibility and ask it to predict more about the economy?