Fed Considering The Use of Sweeping Powers

The Financial Times has a story that suggests that the Federal Reserve Bank may now be considering all of the tools in its tool box (since lowering interest rates and low-interest cash "injections" don't seem to be working). Directly intervening in private business deals is pretty surprising and preventing them from occurring is serious. I'm surprised, and it indicates just how serious our economic problems really are. (click here for the story)

Here is an excerpt:

The Federal Reserve could use proposed new regulatory powers to try to stop credit and asset market excesses from reaching the point where they threaten economic stability, the US Treasury said on Tuesday.

David Nason, assistant secretary for financial institutions, said the Fed could even use its proposed “macro-prudential” authority to order banks, hedge funds and other entities to curtail strategies that put financial stability at risk.