Fed Gets More Power, Responsibility

I read an article today from The Wall Street Journal called "Fed Gets More Power, Responsibility" and it talks about the new law passed by Congress, which has expanded the Federal Reserve's role and given it more power. A quick summary is included in the following:

Before, it was thought that the powers of the Fed would actually be reduced because of its failure to prevent the financial crisis in 2008 and for not bailing out Wall Street in more recent times. However, the new law allows the Fed more responsibility and power in protecting the financial market and preventing financial crises. Doubts occur because people wonder if this additional power will indeed help the Fed to further prevent crises, and what will happen if it cannot. Oversight of the financial institution remains with the Fed and other organizations within the Financial Stability Council. The Fed is now given the power to break up large financial companies if the stability of the financial system is threatened, and to "scrutinize the largest hedge funds." The law will probably bring the actions of the Fed into political controversy. However, in the consumer-finance regulation, the Fed will give up most of its powers to a different agency. The Federal Reserve Board was also given an additional vice chair position, which is appointed by the White House, and the Fed is now also in charge of setting merchant debit card fees.

This article is worth reading because one sees how legislation and Congress makes a difference in society, especially the financial world. The new law opens up so many doors for the Fed, and I learned a lot regarding the duties of the Fed. The government has many regulations that people are usually unaware of and I feel that it is interesting to read about how the government works to protect us and to what extent.