Bernanke: Fed Can Handle Financial Supercop Role - Political News - FOXNews.com

Bernanke: Fed Can Handle Financial Supercop Role - Political News - FOXNews.com: "'The Fed has made some big mistakes,' said the panel's highest-ranking Republican, Spencer Bachus of Alabama. Letting the Fed become the financial supercop would be 'just inviting a false sense of security' that would be shattered at taxpayers' expense, he warned."

"Bernanke urged Congress to keep proposals to audit the Fed away from monetary policy duties. 'A perceived loss of monetary policy independence could raise fears about future inflation,' he warned."

i.e. Don't watch what we are doing or bad things will happen. That would be funny if the impact weren't so huge.

"Bernanke sought to assure investors and Congress that the Fed will be able to reel in its extraordinary economic stimulus and prevent a flare up of inflation when the recovery is more firmly rooted."

With the huge increases in the money supply, the political pressure for short-term growth, and the complexity of the economy this is virtually impossible. If the Fed can do that effectively why couldn't it prevent the recession?