U.S. Federal Reserve Fights to Maintain Powers


The U.S. Federal Reserve is fighting Congress to maintain its role in regulating U.S. banks amid rising internal tensions over the central bank’s reorganizing, The Wall Street Journal reports.

“The worst of the banking crisis may be long over, but the political contest over the Federal Reserve is entering a crucial phase in which its personality and role will almost certainly be redefined.

The Fed has tried to fend off very public efforts in Congress to strip it of responsibility for regulating America’s banks, but a less-visible battle has been playing out inside the central bank. The Fed has undertaken a wrenching reorganization of its army of 3,000 bank supervisors, which has centralized more power in Washington and sometimes pitted officials at the 12 regional Fed banks against those in the capital.”

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