Statement at Hearings on Financial Instituitions and the Nation's Economy

The issues before the committee may appear to be narrow technical issues of procedure and organization and in a sense they are. There is, as always, a broader set of issues that, once resolved, can guide the choice of procedures. Principal among these is the degree of independence that the Federal Reserve should be permitted. I address the broader issues first to present a set of principles that are helpful in resolving the narrower issues. Then, I offer some specific proposals.