Category Archives: Guest Post

Will Janet Yellen Rather Protect Big Banks, or the Fed?

The House-Senate conference on the highway bill represents a choice, with the Federal Reserve pitted against the big banks that partially own them. It’s not a choice we should have to make; the highway trust fund has a shortfall because we haven’t raised the user fee on roads, i.e. the gas tax, in over 20 years, and the severe antipathy to taxes of any kind left Republicans to hunt around the couch cushions for an alternative. So we are where we are now. And this choice between big bank profits and central bank independence is firmly in the hands of Janet Yellen.