Towards an effective field theory of QED

A procedure for reducing the functional integral of QED to an integral over bosonic gauge invariant fields is presented. Next, a certain averaging met hod for this integral, giving a tractable effective quantum field theory, i s proposed. Finally, the current-current propagator and the chiral anomaly are calculated within this new formulation. These results are part of our p rogramme of analyzing gauge theories with fermions in terms of local gauge invariants.