It's funny, I agree with your points, but I'm concerned for a very different reason!
The Fed is an institution staffed by unelected, career technocrats. It's not supposed to have such sweeping powers (and, by charter, it really doesn't), but, like most parts of the executive branch, it has expanded in scope over time due to a steady erosion of our lawmaking institutions.
Put bluntly, the Fed can do what it does for the same reason the President can start pseudo-wars without going to congress: it's inconvenient for lawmakers to cop to such responsibilities. The other branches of government are simply shoring up the holes.
To be honest, I like the Fed a lot... In so far as grossly unchecked power goes, we could have far less competent people at the helm (The fact that so few in monetary policy wind up in congress is the real tragedy, if you ask me). That being said, future performance is no guarantee. History shows that it is not so simple to take back power once ceded for the sake of expediency when it is no longer convenient.
The question is how you put the genie back in the bottle.
I think this is the core insight of small-government conservatism. When big, powerful institutions exist, they can do great things...provided they're always run by exceptional people. But when they're not, the damage they can do is incalculable.
So the question becomes, how do you create a system with the best long-run survival properties? I, I suspect much like you, would like it if there was some way we could return a bit of power back to Congress and other institutions, and away from the huge executive we have today, in 2020. It just feels like a ticking time bomb until the wrong people get the helm.
It sounds like a lack of insight and accountability. I don't see a large government as a problem, but unchecked power. As long as all people in power are democratically appointed, subject to transparency and with accountability, errors can be corrected.
> democratically appointed, subject to transparency and with accountability
I am no longer so sure these aren't mutually exclusive. In the end, the buck stops at the voters. Do voters in practice make decisions that make any sense at all? Were the successes of democracy really the successes of voters, or were they the successes of a technocratic gatekeeper class who very carefully controlled the flow of information to induce the voters to make the "right" decisions?
The Fed is an institution staffed by unelected, career technocrats. It's not supposed to have such sweeping powers (and, by charter, it really doesn't), but, like most parts of the executive branch, it has expanded in scope over time due to a steady erosion of our lawmaking institutions.
Put bluntly, the Fed can do what it does for the same reason the President can start pseudo-wars without going to congress: it's inconvenient for lawmakers to cop to such responsibilities. The other branches of government are simply shoring up the holes.
To be honest, I like the Fed a lot... In so far as grossly unchecked power goes, we could have far less competent people at the helm (The fact that so few in monetary policy wind up in congress is the real tragedy, if you ask me). That being said, future performance is no guarantee. History shows that it is not so simple to take back power once ceded for the sake of expediency when it is no longer convenient.