Posted on 11/28/2018 1:28:02 PM PST by SeekAndFind
In recent weeks, Trump criticized Federal Reserve Chairman Jerome Powell several times. He doesn’t like that Powell is leading the Fed to raise interest rates.
Past presidents avoided such comments so they wouldn’t appear to be interfering. But Trump doesn’t care about appearances.
The Fed is somewhat insulated from electoral politics. The chair and board members have fixed terms. Its composition changes slowly... but it doesn’t have to.
Tucked away deep inside the Fed’s founding law is a provision Trump could use to completely rebuild the Federal Reserve Board of Governors.
Markets should pay attention. I don’t think they are.
A common perception, even among Fed experts, is that presidents can’t fire the chair and board of governors once they take office. They’re thought to be like the Supreme Court in that regard, although they don’t serve for life.
But that’s not quite correct.
The Federal Reserve Act doesn’t explicitly give the U.S. president power to fire the Fed board members. But section 10 has a mysterious little phrase indicating it’s at least possible.
“…thereafter each member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President.”
That’s all it says on the subject, as far as I can tell. The Act doesn’t define what the word “cause” would entail. But Congress clearly thought the U.S. president should be able to remove board members before their terms expire, under certain conditions.
This legislative time bomb has been lurking in there for decades. Now we have a president who loves exercising unilateral power in ways his predecessors did not.
(Excerpt) Read more at forbes.com ...
OK, then who owns it?
No, the Federal Reserve is not an agency of the government. It is a corporation. The President could lose track of a JDAM somewhere in that vicinity.
The Federal Reserve is a private corporation.
It’s a privately owned entity.
Look it up. I read about its evil years ago.
You can start with “The Creature of Jekyll Island”.
Did the same person who recommended Sessions recommend Powell?
What is Powell’s background?
It's a privately owned entity but it's governed by a presidentially-appointed board and all of its profits go to the federal government.
Sure.
How many private entities have an OIG Inspector General checking up on them?
Which state is it registered in?
I'll go look up its incorporation papers.
So, have any here read “The Creature from Jekyll Island”, by G. Edward Griffin? Watched a YouTube video of his, very interesting, but not sure of him or his topic. Any other related referrals?
Thanks
cancel my request on the Creature
Personally, I'd prefer to see Trump Fire ALL of the Fed Governors and dissolve the Fed once and for all.
“They have an independent Inspector General just like every other federal agency.”
I’m not thrilled with that. How have these “independent inspector generals” helped our Republic? I see zero evidence that these people have heeled the deep state and sent them to prison. If you have contrary evidence, feel free to list it. The inspector generals have sent nobody in the FBI to prison. Nobody in the Interior Department has been sent to prison for the Raponos v US decision. If you trust the federal inspector generals, we have no reason to communicate further.
“Well, then you should be pissed at Trump because he’s basically telling them, “screw inflation, keep rates low”.
Well, that makes no sense. Care to expand that opinion?
“The Fed is audited every year by an outside firm. No big deal.”
and who pays for that audit? and who chooses which accounting firm does the auditing? the answers might reveal a big deal.
Yes, who owns it? This should be interesting.
The individual banks.
and who chooses which accounting firm does the auditing?
The individual banks. For most it's KPMG.
Raponos has been a split decision at every level. I'm grateful that you're here to settle it for us all.
Well, that makes no sense. Care to expand that opinion?
Trump is upset with Powell for raising interest rates because that may slow the economy.
The Fed is raising interest rates because they're worried about the economy overheating which may cause inflation.
Simple enough for you?
The Member banks - in others words a secret.
Who owns what percentage of the member banks?
If I want to look up who owns Boeing or Ford and in what percentages - that would take less than 5 minutes.
Kind of. The Federal Reserve has both a private and a government component. The Board of Governors and its staff are federal employees. The twelve individual banks and their employees are not. Each individual federal reserve bank is owned by the member banks within their district. Individual bank boards are elected by member banks and those boards select bank presidents. A percentage of the profits generated by each bank, I believe it's five or six percent, are returned to member banks as dividends. The rest of the profits are turned over to the federal government.
You and I do.
and who chooses which accounting firm does the auditing?
The governing board appointed by our President.
Hardly secret. Every nationally chartered commercial bank within a given district is required to own stock in the district federal reserve bank.
Who owns what percentage of the member banks?
Virtually all commercial banks in the U.S. are public corporations owned by their shareholders.
If I want to look up who owns Boeing or Ford and in what percentages - that would take less than 5 minutes.
I can do the same for United Missouri Bank, Commerce Bank, Bank of America, Chase, and just about any other commercial bank. Didn't even take me five minutes.
“and who pays for that audit?
The individual banks.
and who chooses which accounting firm does the auditing?
The individual banks. For most it’s KPMG. “
and if KPMG or any other accounting firm finds that these banks are doing something untoward, would these banks then rehire the same accounting firm for their next annual audit?
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