A new contest is brewing up in the United States, even as the policymakers still battle it out in what many believe as the last leg of the worst financial or should we say an economic crises ever since the Great Depression. The tussle between the senators and the Fed itself, over the issue of regulations of banks, continues and a bipartisan US financial deal seems uncertain.

The Fed has quashed every public effort, including that of the Congress to alter its supervisory power of regulating America's banks, saying that doing so would seriously undermine its ability to maneuver the economy in times of financial emergencies. "We have been conducting intensive self-examination of our regulatory and supervisory responsibilities and have been actively implementing improvements," Fed Chairman Ben Bernanke said last month, in a request to policymakers save Fed powers.

Limiting Fed's responsibility to just manage the monetary policy and the separation of the banks' oversight is part of a bigger bill currently being formalized, which aims at strengthening the US financial architecture. Setting up a consumer financial protection agency is also one such issue that is currently being debated.