Letter: Federal Reserve violates principles

Friday, Oct. 22, 1999 | 9:43 a.m.

The Federal Reserve's charter and accountability is obtuse at best. However, it is safe to say that the charter does not include market manipulation. Fed Chairman Alan Greenspan appears to have no accountability to any institution or elected official. He is a professional bureaucrat with his own agenda.

This condition is questionable at best within a democratic system. The Fed appears to be unconstrained in dealing with interest rates and Greenspan is unconstrained in his comments. One wonders if he would defend either position in a court of law. A test would no doubt be a positive experience for the taxpayer.

The Fed was controversial at inception; perhaps charter negotiation should be reopened. In any case, reappointment of Greenspan would be a poor decision. One would think appointed bureaucrats would submit substantial comments for review prior to delivery.

It is my opinion that the Fed, in its current condition, violates the democratic principles upon which this nation was founded. Perhaps this condition is in line with voter desires, but it should be tested.

THOMAS E. MURRAY JR.