Bernanke and the Constitutionality of the Fed

Ben Bernanke was sworn in as Fed Chairman.He made some interesting remarks:

Good morning.

I would like to begin by thanking President Bush for the confidence he has placed in me and for attending this ceremony. Today marks only the third visit of a President to the Federal Reserve. Franklin D. Roosevelt dedicated this building in 1937 and Gerald R. Ford visited in 1975. Mr. President, you do us a great honor.

Members of the President's economic team and the heads of the federal financial regulatory agencies have also joined us this morning. I have greatly enjoyed collaborating with many of you during my time in Washington, and I look forward to working with you in the future. Thank you for coming.

I would like to extend a special welcome to members of Congress. The Federal Reserve was created by Congress in 1913 and entrusted with the power, granted originally to the Congress by the U.S. Constitution, to coin money and regulate the value thereof. Accordingly, it is incumbent on the Federal Reserve to report regularly to, and work closely with, the Congress. I look forward to a strong and constructive relationship with members of both the House and Senate.

Now you may ask how the Fed was given powers given to the United States Congress in the Constitution? Those who were behind the so-called "Progressive era" weren't actually strict constructionists.