Proposed law on Fed will damage economy, warns Yellen

Washington

JANET Yellen warned on Tuesday that a proposed law to more closely oversee the Federal Reserve would politicise monetary policy and do deep harm to the US economy.

The Fed Oversight Reform and Modernization (FORM) Act would tie the hands of Fed policymakers to a formulaic rule that, if in place during the last six years, would have greatly worsened the impact of the economic crisis, Ms Yellen said in a letter to House Speaker Paul Ryan and House Democratic leader Nancy Pelosi.