Thursday, January 15, 2009
Fed vice chairman Donald Kohn gets a grilling from a congressman
This one's a bit esoteric. The Federal Reserve has "increased its balance sheet" (i.e. printed) $1.2trn. However they are refusing to say who they loaned the money to or what they spent it on. We've already talked about how Bloomberg is suing the Fed and Fox is suing the Treasury to find out where all the money went. Now finally Congress is getting in on the act and asking pertinent questions. This probably won't happen in Britain (the dollar's status as global reserve currency causes unique issues), but it's an interesting side show.