3/ Think of it as a homeownes association version home ownership. The Fed is the association and the 12 regional banks are the home ownership.
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3/ Think of it as a homeownes association version home ownership. The Fed is the association and the 12 regional banks are the home ownership.
How about your thoughts on the idea that the Fed is more powerful than the White House when it comes to economics and monetary policy?
1/ Monetary policy is in the hands of the Fed. Congress control fiscal policy. The White House really cant do a lot other than hem and haw. It cant even spend money, that is up to Congress.
2/ That said, does the Fed really control monetary policy. If the commercial banks are the ones who increase the money supply under fractional reserve lending, what control does the Fed really have? It cant force banks to lend.