Replies to post #635446 on Fannie Mae-No Politics (FNMA)

[bcde]

"A president, if allowed to have influence over an agency like the Fed, could arbitrarily determine monetary policy to meet short term political goals instead of allowing an independent Fed do what is best for the country via the voting members of the agency.

It won’t happen ..."

The two exception criteria is crystal clear.

POTUS and Congress as well as FED know the law and they are doing the balancing act to keep the banking lobby happy and at the same time fooling all that FED is independent.

If it comes to testing the law, FED does not stand a chance under current two exceptions criteria.

[mrfence]

So it's better to give a private for profit corporation executive power to set this nations monetary policy to benefit?

Mayer Amschel Rothschild, "Permit me to issue and control the money of a nation, and I care not who makes its laws!"

Last time I checked the President still answers to the people while the Federal Reserve answers to itself/shareholders.

The Fed and the Great Recession
How Better Monetary Policy Can Avert the Next Crisis

PLAY
Today, there is essentially one accepted narrative of the economic crisis that began in late 2007. Overly optimistic homebuyers and reckless lenders in the United States created a housing price bubble. Regulators were asleep at the switch. When the bubble inevitably popped, the government had to bail out the banks, and the United States suffered its deepest and longest slump since the 1930s. For anyone who has seen or read The Big Short, this story will be familiar.

Yet it is also wrong. The real cause of the Great Recession lay not in the housing market but in the misguided monetary policy of the Federal Reserve.

https://www.foreignaffairs.com/articles/united-states/2016-04-18/fed-and-great-recession

[bcde]

"The FHFA, on the other hand, is firmly outside the executive realm’s boundaries. The FHFA has also, as has been opined in the 5th circuit, went beyond well established conservator law. Does SCOTUS crush HERA? Do they make the director removable “at will” by POTUS? What is the appropriate remedy?"

1. If SCOTUS wants to make a political statement then it will change HERA and make it constitutional even though there is no severability clause in HERA.

2. If SCOTUS wants to interpret the laws and decide cases based on the text of the constitution as written, then HERA/FHFA has no place in our present system.

3. As a compromise SCOTUS can reinterpret HERA to conform to constitutional laws. This requires lot of convoluted thinking.