Federal Reserve

'Out of control' Fed should be abolished: McNealy

McNealy says abolish 'out of control' Fed
McNealy says abolish 'out of control' Fed

The Federal Reserve has become a "marketing department" for the government and "shouldn't be in any business at all," Scott McNealy, co-founder of SunMicrosystems and Harvard-trained economist, told CNBC on Tuesday.

Fed should not be able to do "quantitative easing without going through Congress. It's an out of control branch of the U.S. government" that should be abolished, he said on "Squawk Box."

McNealy's rant against the Fed comes as central bank policymakers began their two-day September meeting, with investors wondering if this is finally the week when the long-expected tapering of the Fed's current $85-billion-a-month bond-buying program will begin.

"If you're running deficits and you're printing money, you're devaluing the dollar and the buying power of every thing dominated in U.S. dollars, assets and income," McNealy said. "The consumer is feeling that."

"You can't say everybody else is devaluing" their currencies, he added, "so it doesn't matter that we do. If we hadn't devalued we'd have stronger buying power."

By CNBC's Matthew J. Belvedere. Follow him on Twitter @Matt_SquawkCNBC.