Split authority overwhelms the Fed’s regulations
Worstall 14 – senior fellow at the Adam Smith Institute
Tim Worstall, “Inequality Is Not the Fed’s Priority,” The New York Times, 10-27-14, https://www.nytimes.com/roomfordebate/2014/10/27/what-could-the-fed-do-to-address-inequality/inequality-is-not-the-feds-priority
The Fed does have a regulatory role in banking, so it could at least try to intervene in such areas as small business lending, risky investment and bank involvement in derivatives. But split authority in this area means that could also fall, dependent upon the bank and or the product, under the remit of the C.F.T.C., F.D.I.C., O.C.C. and numerous other agencies that make up the alphabet soup of the regulatory structure. The Fed's bully pulpit is therefore powerful – its direct regulatory control of the system less so.