Something Democrats and Republicans agree on: the hatred of the US Federal Reserve (Atlantic)

Daniel Indiviglio - Daniel Indiviglio is an editor at the Atlantic, where he wrote on the credit markets regulation, policy monetary & tax, taxes, banking, trade, markets and technology. Before joining the Atlantic, he wrote to Forbes. He has also worked as an investment banker and a consultant. Daniel Indiviglio is a publisher of blogger and partner for the Atlantic Business Channel, where he provides insight, analysis and advice on the intersection of business, finance, economy and politics. Among its specific interests of writing: markets, regulators, policy monetary & tax, tax, banks, markets and credit technology. Before joining the Atlantic, he wrote to Forbes. Front of journalism, Daniel has spent several years as an investment banker and consultant for financial services companies. Prior to this, he gets graduated from Cornell where he triple lags in economics, philosophy and physics. He resides in Washington, D.C. metro area. December 2010 9: 11: 13 AM ET

Nowadays, it is quite difficult for the Democrats and Republicans agree on almost anything. But a new survey of Bloomberg reveals that they see eye - to-eye on a single issue: their hatred of the Federal Reserve. While the broad public discontent with the u.s. Federal Reserve is not shocking news, the action should aggressively Americans think survey shows they want big changes.

Joshua Zumbrun provides figures:

Us across the political spectrum say the Fed should not retain its current structure of independence. Was asked if the Central Bank should be responsible to the Congress, independent of the left or removed altogether, 39 percent said that it should be held responsible for more than 16% should be abolished. Only 37% favor the status quo.

In other words, a majority of Americans want to change. This goes beyond mere dissatisfaction. And this is not really a political problem. According to the survey, 19% of independents, 16% of Republicans, 12% of Democrats and 21% of the tea party goers want the Central Bank was abolished. This last statistic isn't terribly surprising, since one of the favorite politicians party Tea, Rep Ron Paul (R - TX) is probably the main opponent of Fed in Washington.

However, the idea that the Federal Reserve should be abolished entirely is rather madness. A complex economy needs a Central Bank. Some calls for reform may be more legitimate, however.

It is therefore a few examples of changes that could be more reasonable? The audit authority Paul Republic claimed could allow additional Congressional oversight, but would not necessarily undermine capacity the Fed to conduct monetary policy. Fed independence are a good idea, because politics clouds often its economy. But this does not mean that the mandate of the Federal Reserve is indisputable. Could support the maintenance of a stable inflation rate should be a priority, and Congress should worry about unemployment.

Of course, it is has more varied opinions on the ways in which the Fed must change, depending on the political view type. If you're more far-left and like the idea of a planned economy, then explicit you probably like the idea that u.s. Federal Reserve can intervene to improve financial stability and to reduce unemployment without consent of Congress. But if you are more far to the right and would prefer a free market, then you can believe that the interference of the Federal Reserve does more harm than good.

And in both cases, you may be dissatisfied with the US Federal Reserve, thinking it was too little or too much during the past few years. This explains why there is so much dissatisfaction with the Central Bank. That macroeconomics is not a hard science with easily identifiable cause and effect, the debate in the US Federal Reserve is not likely to end at any time soon either. As long as people disagree on the basic economic principles, they will be disagreement on how Central Bank economists must take steps to promote a healthy economy.

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