Remember, the Fed is a privately owned entity, so the question now being asked is: what value does the Fed really add? It was supposed to add stability to the financial system, but the global financial crisis tells us that this is not working. Perhaps of even more concern is that the independence of the Fed is also being questioned. Is there a conflict of interest between the shareholders of the Fed (the large private banks and families) and US citizens? These questions surely need to be debated in an effort to create a more fair and stable financial system.
In my view, the single biggest issue with the current Federal Reserve system, is that its activities are beyond scrutiny. There is no public disclosure of its discussions and decisions, and although the Governance Council of the Fed is government selected, the influence of its banking shareholders cannot be underestimated.
The secrecy of the Fed is surely a major risk to world stability.