An unprecedented press conference was held in Washington on Wednesday – one that should have been convened a long time ago. And no, it wasn't the one to announce publication of Barack Obama's birth certificate, but rather the first of its kind by the US Federal Reserve. Believe it or not, the Fed has never before made itself directly answerable to the fourth estate for its monetary policy decisions. – UK Telegraph
Dominant Social Theme: Now that the Federal Reserve is more accountable, it will be better run.
Free-Market Analysis: This is an interesting article by UK Telegraph assistant editor Jeremy Warner. Entitled "Why the power of the mighty Federal Reserve is finally on the wane," it takes as its thesis the idea that modern demands have placed on the Federal Reserve modern obligations and the additional transparency of the Federal Reserve is a rational response.
Of course, from our point of view, the really rational response would be to do away with the Fed altogether. And we would make the argument, as well, that having Ben Bernanke (above left) give a press conference about Fed moves does absolutely nothing to address the fundamental issues that caused the Fed brain-trust to decide press conferences were necessary in the first place. In this article we'll take a look at those reasons and examine whether additional Fed openness will be enough to drown out the critics.