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Title: The Federal Reserve explained
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URL Source: http://news.yahoo.com/the-federal-r ... couric-explains-214143256.html
Published: Mar 28, 2015
Author: Kaye Foley
Post Date: 2015-03-28 12:00:22 by BTP Holdings
Keywords: None
Views: 93
Comments: 5
The Federal Reserve explained By Kaye Foley Chair Janet Yellen grabbed everyone’s attention this year when she implied that the Federal Reserve, aka the Fed, may raise interest rates for the first time in six years. The markets have been responding ever since, once again proving that the Fed holds a lot of the cards when it comes to the U.S. economy. But what exactly is the Fed? And how did it become so powerful? The government has influence over the economy in two ways. There’s fiscal policy, which is when Congress and the president create legislation on taxes, regulation and government spending. Then there’s monetary policy, and that’s where the Fed comes in. The Fed, while a government agency, is independent and operates without needing the approval of the branches of government. It was created in 1913 with the Federal Reserve Act as a way to centralize and regulate banking to avoid economic collapse. Now, as the nation’s central bank, the Fed supervises other banks to ensure they’re safe places for people to keep their money. The Fed also studies economic trends and makes decisions intended to keep the economy healthy and employment levels high. It regulates interest rates and money availability. For example, if the Fed wants to hit the economic accelerator, the central bank will buy bonds from banks, increasing the money supply and spurring more lending to consumers and businesses. In an economy with little growth, the Fed tries to encourage spending and hiring, so it will also lower interest rates. This means lower interest rates for the banks, which in turn means lower interest rates for customers when it comes to loans, mortgage rates, and more. When the economy’s in good shape but at risk of running too hot — meaning there’s too much inflation — the Fed does the opposite and increases the interest rates to steady things. It’s all about checks and balances. Currently the economy is doing well. The dollar is strong, inflation is low, and unemployment is down. The Fed is weighing whether or not the economy is strong enough to handle an increase in interest rates before making a decision. If you’re watching the market eagerly and prepping for a big purchase or just curious about the economy, when it comes to the Federal Reserve after watching this video you can say, “Now I get it.” Poster Comment: Several links in the story at source.
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#1. To: BTP Holdings (#0)
Pardon me? Must be time to try keeping the peasants back from busting down the doors or something. HTF can it be a government agency when it has owners and those owners are not even known?
It's a govt monopoly. For all practical purposes is indistinguishable from a nationalized bank. Just like a national bank there is no competition to keep it honest. To call the Fed a "private" bank is to disparage private entities in general. A real private bank one would have a choice to not do business with.
John Howard says: There are 4 schools of economics: Democrats don't mind war as long as they can have big government. Republicans don't mind big government as long as they can have war. It's not a government agency. To argue that is to destine oneself to false conclusions. The Feds are beholden to the Federal Reserve. That could not possibly be the case if it were an agency of the FedGov. Why the resistance to audit if it's a government agency? The GAO should have everything on record if it were. This is a media attempt to keep the curtain from rising fully, that's all.
I know it is not a govt agency. But what I am saying is that it enjoys the full backing of federal police powers as if it were a govt agency. A monopoly on exchange and currency is just as corrupt and draconian whether it is officially state fiat or the govt giving unfair monopoly favor to some "private" family.
John Howard says: There are 4 schools of economics: Democrats don't mind war as long as they can have big government. Republicans don't mind big government as long as they can have war. How can it be a government monopoly unless it's a government agency? It may be a private monopoly, and it is, but it's not a government monopoly. My point was that I was taking issue with the author of the piece, apparently Kaye Foley, stating that it was a government agency when it clearly is not.
The Fed, while a government agency, ...
#2. To: Katniss (#1)
Marxism: steal everything
Keynesianism: steal by counterfeiting whenever needed
Chicago school (Milton Friedman): steal by counterfeiting at a steady, predictable rate
Austrians: don't steal
'Wiped off the Map' – The Rumor of the Century
#3. To: PnbC (#2)
#4. To: Katniss (#3)
Marxism: steal everything
Keynesianism: steal by counterfeiting whenever needed
Chicago school (Milton Friedman): steal by counterfeiting at a steady, predictable rate
Austrians: don't steal
'Wiped off the Map' – The Rumor of the Century
#5. To: PnbC (#4)
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