With Republicans in control of the House of Representatives, Ron Paul plans to conduct oversight hearings of the Federal Reserve Board. His views on the fed are well know given his book titled “End the Fed.” Paul and other Members of Congress blame the fed for the financial crisis of 2007-09 and the steady depreciation of the dollar since its fixed-price link to gold was broken during the Nixon administration.
Paul’s interrogation of fed chairman Bernanke will make for interesting theater but likely have little practical effect on the fed’s conduct of monetary policy. A more important trend that is slowly developing could render the fed a second-team player over the next few decades.
