Whenever I teach macroeconomics or Money and Banking, I cover the Federal Reserve system.  Most times when I mention it is a quasi governmental organization, my students frown and ask what I mean by that. I explain that it isn't actually a government agency, but it is a powerful force in our economy as it wields the power of monetary policy.  I then talk a bit about its board make-up which is composed of mostly bank appointed officials.  The same banks that are regulated by the Fed appoint a good number of its board members!  Then I feel obliged to point out the potential for conflict of interest in this arrangement.

It is , therefore, with much interest that I read this article in the new York Times.  I hope that one silver lining to the recent JP Morgan Chase high profile loss will be a close examination and then restructuring of Federal Reserve appointments.  However, as I read other news reports, it appears there will be little cooperation in Congress until after the election.  Of course there is no guarantee that the election will end the atmosphere of NO COOPERATION  between Republicans and Democrats in the US Congress, even when the future of our economic system might be in jeopardy.