Backgrounder posted August 20, 2014
The Fed’s Failure as a Lender of Last Resort: What to Do About It
It is not obvious that the Fed should be involved in emergency lending, however, since expectations of such lending can increase the likelihood of crises. Arguments in favor of this role often misread history. Instead, history and experience suggest that the Fed’s balance sheet activities should be restricted to the conduct of monetary policy.
—Renee Haltom, Research…
Issue Brief posted August 19, 2014
Reining in the EPA Through the Power of the Purse
While significant criticism is rightfully directed to the Environmental Protection Agency (EPA) on issues such as greenhouse gas (GHG) regulation, Congress itself is to blame for not reasserting its lawmaking power over an agency that is supposed to be implementing the will of Congress, not the will of the agency.
Through the appropriations process, Congress can rein in…
Issue Brief posted August 14, 2014
Federal Reserve’s Expansion of Repurchase Market Is a Bad Idea
The Federal Reserve has been expanding a new “test” program it calls the Overnight Reverse Repurchase Facility (ON RRP). This program is a drastic departure from its regular open-market operations and potentially expands the federal financial safety net to the entire money market.
Such an expansion increases systemic risk and increases the likelihood of unintended…
Backgrounder posted August 14, 2014
Quantitative Easing, The Fed’s Balance Sheet, and Central Bank Insolvency
More than five years after the 2008 financial crisis, the Federal Reserve’s role is still the subject of much debate. One source of controversy has been the extent to which the Fed allocated credit directly to possibly insolvent institutions. Critics argue that the Fed should have allowed insolvent firms to restructure through bankruptcy and should have provided credit…
Issue Brief posted August 11, 2014
Five Guiding Principles for Housing Finance Policy: A Free-Market Vision
The two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, remain under government conservatorship with the federal government standing behind all of their obligations. Housing finance reform is likely to be addressed during the next congressional session, but it appears the House and the Senate may offer very different reform proposals.
Testimony posted August 7, 2014
Mismanagement of Export-Import Bank Invites Fraud
Testimony before the Committee on Oversight and Reform
Subcommittee on Economic Growth, Job Creation
and Regulatory Affairs
United States House of Representatives
July 29, 2014
Chairman Jordan, Ranking Member Cartwright, and Members of the Subcommittee, thank you for inviting me to testify this morning. My name is Diane Katz. I am a Research Fellow in Regulatory…
Testimony posted August 4, 2014
Tax Reform Would Help American Families: Dynamic Scoring Makes it More Likely
Testimony before the Subcommittee on Select Revenue Measures
of the Committee on Ways and Means
U.S. House of Representatives
My name is Curtis S. Dubay. I am Research Fellow in Tax and Economic Policy at The Heritage Foundation. The views I express in this testimony are my own, and should not be construed as representing any official position of The Heritage…