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Hensarling accuses the Fed of ignoring the federal funds rate threshold of zero by turning to other policies.
The Fed, of course, cannot just dump $3tn in bonds.
The important common bond among all those factors: the represent the Fed of magical thinking.
He uses a Wall Street Journal editorial to accuse the Fed of "improvisation".
Mr. Dodd had initially proposed stripping the Fed of all bank supervision duties.
The Fed, of course, is the Federal Reserve, which has considerable power over the money supply.
Some have accused the Fed of deliberately weakening the dollar to make American exports more competitive.
Paul McCulley, a managing director at Pimco, a big bond-trading firm, accused the Fed of "breaking a covenant".
The Fed, of course, doesn't have a formal target but is believed to want a core inflation rate of 2%.
To do so would be to deprive the Fed of one of the best minds in economics.
He warned that stripping the Fed of its supervision powers "would be the equivalent of ripping out the patient's heart".
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