How Congress Governs the Federal Reserve
Jill Schlesinger
CBS News Business Analyst, host "Jill on Money/MoneyWatch" pods, author of "The Great Money Reset"
This week marked the first time the press spotlight was on Jerome Powell, the new Chairman of the Federal Reserve.
It was just a few weeks ago that Powell succeeded Janet Yellen, and as expected, the Fed just announced another quarter-point increase in short term interest rates, a sign that the economy continues to grow.
It’s probably safe to say that the average person thinks the Federal Reserve is this big stone building in D.C. that does its own thing, if people are thinking about the central bank at all!
But the truth of the matter is that not a lot comes out of the Fed without running things by another big stone building, the one that houses the Senate and House of Representatives.
To help pull back the curtain a bit on the complicated relationship between the Fed and Congress, we are joined by my childhood friend and Fed expert, Mark Spindel, who along with Sarah Binder, recently published: The Myth of Independence: How Congress Governs the Federal Reserve.
The pages trace the Fed’s transformation from its roots as a weak, secretive, and decentralized institution in 1913 to a remarkably transparent central bank a century later. Offering a unique account of Congress’s role in steering this evolution, the book explores the Fed’s past, present, and future and challenge the myth of its independence.
Examining the interdependent relationship between Congress and its central bank, The Myth of Independencepresents critical insights about the future of monetary and fiscal policies that drive the nation’s economy.
Thankfully, the Fed today retains enough power to prevent lawmakers and the president from completely controlling monetary policy.
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Operations Supervisor
6 年The federal reserve is owned by private bankers. Congress can’t even get the fed to perform an audit
Portfolio Manager specializing in Alternative Investment Strategies
6 年One would easily assume that the Fed is truly independent. Not "independent"
Key Account Manager Mpsmobile GmbH and Prio
6 年Who does the Fed really belong to and who is gaining phenomenal money with its system, we know that it's not American Peoples who benefits but WHO ? ;-)
Head of Fill & Finish Strategic Projects at Merck
6 年The Fed is owned by it's 12 regional banks, most powerful of them the NY Fed, of course. The regional Fed banks are owned by local commercial banks. They get 6% dividend of what the Fed makes in a given year. And no, you can't buy a stock in the Federal Reserve Bank. That is possible in Switzerland. The US stock is closely held.
I help small business owners receive the benefit of a loan through the Small Business Administration. My favorite industry is the funeral business.
6 年By stalling on an Audit the Fed bill?