Critics of the unconventional monetary policies in 2009 and 2010 argued that by deciding which financial institutions would fail and which would not, the Fed was assuming authority that rightfully belonged to

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The power to decide which financial institutions should fail and which should not belongs to Congress, which has the authority to pass laws and make policy decisions regarding financial regulation and supervision. The Federal Reserve, as an independent agency, has some discretion in implementing monetary policy, but its actions must be consistent with the overall policy goals and objectives set by Congress. The FDIC and the U.S. Treasury also play important roles in the regulation and supervision of financial institutions, but they do not have the same authority as Congress to make policy decisions that affect the entire financial system.

Critics of the Unconventional Monetary Policies in 2009 and 2010