Federal Reserve Tries to Burnish Image with Ad Campaign

The Federal Reserve Bank is on the hot seat for failing to protect consumers from unscrupulous mortgage lenders, failing to predict or prevent the financial crisis, and its involvement in the multi-billion-dollar, 2008 taxpayer-funded bailouts, making this a great time to run an ad campaign to try and burnish its image. As the time nears for Congress to consider legislation to rein in the country's financial sector, the Fed started running 45-second public service announcements in movie theaters throughout the U.S. urging viewers to use their credit cards wisely. Amid jazzy music, an announcer asks, "Want to use your credit card wisely? Here are some tips you can trust from the Federal Reserve." The announcer suggests things like paying your bill on time, staying below your credit limit and watching for changes in the terms of your account. Rocky Vega of the Daily Reckoning points out the hypocrisy of the Fed urging the responsible use of credit, saying the Fed "has been on a spending spree in the trillions of dollars, with seemingly little concern about the debt being accrued." The timing of the ads could also help improve the Fed's image just as its Chairman, Ben Bernanke, faces hearings to consider his nomination for a second term.