Thursday, 7 April 2016

Election stirs debate about Fed's handling of political pressure

Donald Trump says the Federal Reserve has stoked asset bubbles and backs a congressional review of its decisions. Bernie Sanders also wants to "audit" the Fed to make it less beholden to Wall Street. Ted Cruz calls for a return to a gold standard abandoned in 1933.

Such voices from the 2016 presidential campaign have emboldened lawmakers who seek to limit the Fed's powers and are prompting some current and former Fed officials to call for steps to placate the US central bank's harshest critics.

More than a dozen insiders and Fed watchers said in interviews they were concerned that the next president could be more sympathetic to critics' views that the Fed has grown too powerful and impenetrable.

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