How the Fed Sees Itself Is Not Pretty

2 | By Shah Gilani

Talk about putting your foot in your mouth. This would be funny if it wasn’t sickening.

During congressional questioning on Friday, Sen. Elizabeth Warren (D. Mass.) commented that the U.S. Federal Reserve‘s job is like that of “a cop on the beat.”

And that’s when New York Fed President William Dudley inserted a foot in his big mouth.

He responded, “I don’t think our primary purpose as supervisors is a cop on the beat, it’s more like a fire warden; make sure that the institution is well run so that, you know, it’s not going to catch on fire and burn down. And managed in a way that if the institution is stressed that it doesn’t collapse and threaten the rest of the financial system.”

In other words, there’s no “policing” going on.

Dudley said it – not me.

But today I’ll share with you what I do have to say – and I’ll show how the close relations between Wall Street and Washington could lead to yet another financial conflagration…