Posted on 12/24/2018 11:28:26 AM PST by E. Pluribus Unum
“As stipulated in the Banking Act of 1935, the Chair and Vice Chair of the Board are two of seven members of the Board of Governors who are appointed by the President from among the sitting Governors.”
“The Chairman and the Vice Chairman of the Board are named by the President from among the members and are confirmed by the Senate. “
https://www.federalreserve.gov/aboutthefed/bios/board/default.htm
Look at the history of Bernanke, Greenspan, and Volker.
“My question is who really controls the Federal Reserve?”
You should read “The Creature from Jekyll Island, a second look at the Federal Reserve”.
It should be required reading for every American citizen.
Well it would have been an issue with Trump!!
Yep! Once you get that, it all makes sense.
OK, I finally found one issue I can disagree with the President. The FED didn’t screw up anything. They did exactly what they had announced WELL in advance that they were going to do. People overreact to nearly everything and since people make the decisions that send the market where it ultimately goes, the market overreacts to everything. The market got TOO bullish because the people trading it got too bullish. The temptation to squeeze shorts was just too good to pass up once the market became overextended. The market had to pay the price for its excess. Then, like a bunch of crying babies, the participants started whining for the FED to extend it an olive branch. The FED’s mandate is NOT to support the stock market. The FED did what it had announced it would do. A few years ago, the market started whining about FED surprises. The FED responded with a greater amount of transparency and started telegraphing its moves. The funny part of all this is the notion that higher interest rates are destined to kill the market. Historically, we are not even close to prohibitively high interest rates. And the market has a history of RISING (regardless of exceptions) with rising interest rates because the demand for money increases as the economy strengthens. The players got spoiled by rates at of near ZERO for so long they forgot what normal rates even look like. Once a lot of states and local governments start going belly up because the historically low interest rates killed their pension assumptions, you will figure out one of the reasons why the FED did this.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.