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4) Read the following newswire on the US Treasury Secretary's proposed sweeping changes in the US financial institutions of the Wall Street as its first significant overhaul since the Great Depression of 1930s.

As a part of the proposal, the Federal Reserve Board will be granted more regulatory power to streamline the irregularities, if any, and complexities of the financial institutions in order to avoid existing mortgage meltdown and recent financial turmoil in the Wall Street. Under the proposed plan, the Fed would have a greater oversight on investment bankers and unregulated hedge funds to bring about the financial stability in the future.

After reading this newswire, briefly and critically describe your viewpoints on its possible impact (if ratified by the Congress) on the controlling process on money, inflation and recession as an extended role of the Fed's monetary policy. You may discuss its implication in both short run and long run for the stability of the US economy as compared to its current roller coaster state of uncertainty in the Wall Street (and in the Main Street).

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Effects of regulation are embodied.