What Really is the Job of the Federal Reserve?

The Federal Reserve already has a full-time job, which it is doing poorly, despite kudos from political hangers-on. That job is primarily to maintain a sound currency. A minor political function is to keep an eye on “full employment” whatever that means out of the context of the Fed’s main function.

The Fed’s handling of the economy has gotten the country into the financial meltdown because of too-low interest rates early in the 21st century. The Fed’s ineptitude is being rewarded with added duties far beyond the original legislation that created the system..

I repeat: Keeping the currency sound, not chasing systemic risk, is the Fed’s main job. Regulating other institutions will further unfocus the Fed.

The upshot of the proposed new regulation:
The Treasury could be asked to seize any financial institution deemed to be posing a systemic risk. Mind you, the Treasury does this. It’s headed by a political appointee of the President. Politics thus raises its ugly head in the whole process of arbitrary regulation.

The government could then cancel company contracts with customers, lenders and employees. Or sell company assets, make loans. take equity and so on. Company shareholders would have nothing to say.

Have government takeovers and bailouts been successful? Should they become a feature of the regulation?