I want to say that I think there have been some partially inaccurate stories in the press imputing to me and some others some unhappiness with the chairman over consumer inactivity. 

In fact, I have historically been concerned about the Fed's failure to do that, and particularly their failure to use the authority they've had under the Federal Trade Act to spell out unfair, deceptive practices.

But this is something that long predated the chairman and that he is in fact addressing. So I do not think it is appropriate for people to impute this unhappiness to him.

And as I read the report and saw the last -- what? -- three or four pages of the report were about this consumer issue, it just became very clear to me this is not Uncle Alan's semi-annual report. And we think we are moving forward

     As you know, this occasion marks the 30th year of semi-annual testimony on the economy and monetary policy for the Federal Reserve.  In establishing these hearings -- Mr. Hawkins and Humphrey were mentioned -- the Congress proved prescient in anticipating the worldwide trend toward greater transparency and accountability of central banks in making monetary policy. Over the years, these testimonies and the associated reports have proved an invaluable vehicle for the Federal Reserve's communication with the public about monetary policy, even as they have served to enhance the Federal Reserve's accountability for achieving the dual objectives of maximum employment and price stability set for it by the Congress.

You should rest assured, however, that I will be here over the next two years, along with 443 members of the House, and 100 members of the other body, to second-guess your every move.

Chairman of the House Subcommittee on Domestic Monetary Policy in opening remarks to Chairman Bernanke.

Monetary policy decisions are made without the direct input or the immediate approval of the other branches of government. This helps keep monetary policy independent of political pressures and influence. Nevertheless, we are independent within the government - not of the government. Ultimately, we are accountable to Congress for achieving two objectives: price stability and maximum sustainable economic growth.

I've always been struck -- and I have to say, I haven't found this to be Alan Greenspan's issue or Ben Bernanke's, but there are people in this country who think that the Fed somehow should be above democracy.
 
     I mean, I remember talking to some people in the Clinton administration:  Oh, we can't discuss interest rates.
 
     I mean, we can debate whether Terri Schiavo's life should be recognized as over.  We can debate abortion.  We can debate wars in Iraq.  We can debate the most fundamental questions in human existence, but God forbid anybody in elected office should talk about whether or not we need a 25-basis point increase in the Fed.  Somehow, that's sacrosanct.  No, it isn't.  It's public policy.
 
     One, I don't want a change.  There are people who have been arguing that the Fed should have its mandate changed, that the
Humphrey-Hawkins Act, which says it should deal both with stable prices and maximum appointment, that that should be changed, and it
should just go to stable prices.
 
     That's not going to happen when we're in power.  And we can prevent that from happening.

I think that it was the very hot political environment that made us reluctant to {target the funds rate}. Y ou know, interest rates were getting pretty high about that time. There was a lot of pressure on us and we knew that we had to do something. And we had to make it palatable so we didn’t get shot out of the water as soon as we began to move. I think--1don’t know if others would agree--that’s why we did it at that time. I thought that we would end up targeting the money supply; but I think most of the people in the room really thought it was a way that they could get the federal funds rate up more than they otherwise could get away with. in that kind of highly charged political environment. That’s the way that I read it. I don’t know; Jerry {Corrigan} or some of the others who were here might see it somewhat differently.