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Barney Frank Working On Legislation To Overhaul The Federal Reserve
The Huffington Post   Bonnie Kavoussi  Updated: 9/13/11 07:18 AM ET

Representative Barney Frank, the ranking member of the House Financial Services Committee, is working on legislation that would transform the Federal Reserve's decision-making process.

According to Bloomberg and The Hill, Frank plans to submit a bill that would remove the votes of the five regional Federal Reserve presidents from the 12-member Federal Open Markets Committee (FOMC), which sets interest rates, and replace them with five appointees that would be nominated by the president and confirmed by the Senate.

Frank is concerned that the process is undemocratic because the regional Fed presidents are not elected or appointed by elected representatives, and he believes that regional Fed presidents are overly likely to focus on guarding against inflation at the expense of more adequately tackling the country's unemployment crisis.

Traditionally, seven governors of the Federal Reserve are appointed to the FOMC in such a way, while the president of the Federal Reserve Bank of New York has a permanent seat on the committee, and four of the 11 presidents of the other regional banks have one-year rotating terms on the committee.

The new legislation will be a revision of legislation that Frank originally proposed in May.........................>>>>........................>>>>.........................http://www.huffingtonpost.com/2011/09/12/barney-frank-federal-reserve_n_959120.html

Being appointed by any administration is a bad idea, electing them into that position would be a better solution. After what Barney Frank did to Fannie Mae and Freddie Mac I wouldn't allow him to pen any legislation dealing with the countries finances.