Alex Jones - New Studio Pt9

Friday December 12th 2008 ------------------------------- Bernanke War Powers Undermine Fed Bank Presidents (Update1) Dec. 9 (Bloomberg) -- The Federal Reserves interest-rate target is getting close to zero, and so is the power of the Feds regional bank presidents. The district chiefs authority over borrowing costs has been marginalized in the past two months as Chairman Ben S. Bernanke and the Fed Board of Governors in Washington made their own decisions on emergency measures to flood the economy with cash. The Board has usurped authority, said William Poole, former president of the St. Louis Fed and now a senior fellow at the Cato Institute in Washington. This dramatic change in policy direction has not been announced or even acknowledged. Bernanke must now try to bring the Federal Open Market Committee, which includes district presidents and Fed governors, along as he turns to more radical strategies, such as buying Treasuries to drive down long-term rates. A lack of consensus at next weeks FOMC meeting could result in muddled communication that confuses investors and undermines confidence. Whatever our communications problems are now, they are going to be magnified in this new world we are going to be in, James Bullard, Pooles successor at the St. Louis Fed, said in an interview. We have a bunch of analysis in the works right now. Frankly, I am mulling it over myself. Yields on 10-year Treasuries this month slid to the lowest level since at least 1962, in anticipation of Fed purchases and weaker growth. The notes yielded 2.73 percent at 10:32 a.m. in New York, compared with an average of 4.70 percent in the past decade. MORE http://www.bloomberg.com/apps/news?pid=20601087&sid=aKba9P9q0Pgc&refer

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YouTube | December 14, 2008

Tags:. .bullard. .usurped. .fomc. .mulling. .magnified