So the Fed officials are not paid by taxes.
Someone says it is a hybrid. It has the appearance of a government entity, hence the reason for the name "federal" and yet owned by private entities.
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So the Fed officials are not paid by taxes.
Someone says it is a hybrid. It has the appearance of a government entity, hence the reason for the name "federal" and yet owned by private entities.
1/ It is a hybrid. The profits are paid to the govt, after expenses and a 6% dividend to the share holders (which is the member banks). The chair and vice chair are nominated by the President and approved by the Senate.
2/ The fed presidents of each bank are voted upon by the shareholders in each. The thing is the Fed board is like a housing committee, it is just a group of people. The ownership is actually in the 12 federal reserve banks.
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.