35 Burst results for "Federal Reserve Reserve"

The World Is Increasingly at Risk of a Global Financial Crisis

The Trish Regan Show

01:54 min | 2 d ago

The World Is Increasingly at Risk of a Global Financial Crisis

"I wrote an article about how we are now increasingly in jeopardy of a global financial crisis. I wouldn't have said this before, but the World Bank, David Lopez, whom I've known for many years, president of the World Bank came out with a warning and said, numerous countries really kind of emerging market developing countries, meaning very poor countries. Have too much debt, and they're not going to be able to pay it back. You see, normally, the World Bank used to lend money, but, you know, hey, 2020, 2021, with all that cash in the system, in part, thanks to the Federal Reserve, all these hedge funds started landing money to a lot of these emerging market countries. And now the bills are coming due. And the rates are resetting because interest rates are going up, it's just like in 2008. Remember in 2008, the whole housing crisis, all these people got loans, leading up to 2008 that maybe shouldn't have had all those loans. I love the Nina loans. The no income no acid loans. Well, there are a lot of those out there at that time, and then as soon as rates reset, well, what do you know? People couldn't afford to pay their mortgages. It's the same kind of thing now going on on a global scale. All this money has been lent to all these countries who now are saying, wow, wait a second. How are we going to pay this back? I mean, we were talking about places like Sri Lanka and El Salvador. And so the danger is that some of these hedge funds, some of these institutions, probably the institutions that lent the money are going to stumble when they don't get the money back. And the fear is if they stumble, what happens to the individual little guy, right? The investors, the American investors, retail investors, pension funds that are invested in all these things. Did they then stumble? This is the domino effect that we have to be

World Bank David Lopez Federal Reserve El Salvador Sri Lanka
Joe Biden's Bad Policies = Bad Results

The Trish Regan Show

01:55 min | 2 d ago

Joe Biden's Bad Policies = Bad Results

"Joe Biden, the guy's like delusional at this point. I mean, half of America doesn't think he's mentally fit more than half of America. He seems offended when that comes up. He is 79 years old, so climbing up there in age, and yet doesn't really seem to have all his faculties. I mentioned yet because I'm not an ageist. I believe that you can perform very well. Very late in life, but Joe Biden strikes me as a very old 79. I mean, he was probably a very old 39 a very old 29 and maybe the reality here is the guy's just not that gifted when it comes to communication. He's not that gifted when it comes to be able to being able to formulate thoughts. I don't think he's not smart. I mean, I think it's great to actually prove that. It's amazing that he's there. It's amazing that he's president. It's actually kind of a shame. Anyway, he's done a terrible job. America knows that. It's why nearly 40% of the country gave him an F on their report card. We talked about that in yesterday's program, but I think we should all just be blown away by the monstrosity that that press conference was yesterday. He rambled, he rambled and went on and on and on, and he sat there and tried to feed us things like, you know, what a great job he's done. I'm sorry, but we've got 7% inflation in consumer prices. It's even worse when it comes to energy prices, of course. 59% more to heat your home this year than last 50% more for gas prices, food prices have escalated, housing prices of escalated, but that's not even counted in the inflation numbers. No, no, no. Anyway, we've got a real problem with our economy in terms of inflation. We've got a real problem with the supply chains. I know he doesn't want us to blame it all on him, but I'm sorry, who well? Who else out there? Yeah, the Federal Reserve carries some of this responsibility, but still it comes back to Joe Biden who's setting the tone with bad policies and bad policies equal bad

Joe Biden America Federal Reserve
Washington Examiner: Biden Fed Nominee Raskin Faces GOP Opposition Over Climate Change Activism

Mark Levin

01:25 min | 2 d ago

Washington Examiner: Biden Fed Nominee Raskin Faces GOP Opposition Over Climate Change Activism

"Here's some breaking news ladies and gentlemen I'm sure you're going to enjoy that Sarah bloom Raskin President Joe Biden's pick for a tough Federal Reserve role I spend Harold on the left as a climate crusader a reputation that will complicate her confirmation process Washington examiner The major focus of Republican arguments against Raskin will feature her view that climate change is a systemic risk to the U.S. financial system And at the fed should play a role in mitigating that risk the nature of her Okay But Joe is a moderate he's not He's not Bernie Sanders or AOC Although as I said Tully in the right light so he just nominated the head the Federal Reserve this kook who believes that we should use our finances relevant to climate change the nature of her positions and the power the role she would have will also come under Republican magnifying glass Sarah bloom Raskin is specifically called for the fed to pressure banks to choke off credit to traditional energy companies and exclude those employers for many Federer lending facilities So would you do a quick Google search and see if this is Jamie Raskin's wife or sister

Sarah Bloom Raskin FED Joe Biden Raskin Harold Bernie Sanders Tully Washington JOE U.S. Jamie Raskin Google
Industrial output falls 0.1% unexpectedly amid supply issues

AP News Radio

00:44 sec | Last week

Industrial output falls 0.1% unexpectedly amid supply issues

"Supply supply chain chain issues issues continue continue to to hamper hamper manufacturers manufacturers I'm I'm Ben Ben Thomas Thomas with with some some fresh fresh data data the the federal federal reserve reserve says says industrial industrial production production fell fell one one tenth tenth of of a a percent percent in in December December the the drop drop was was unexpected unexpected with with many many economists economists forecasting forecasting a a small small increase increase instead instead manufacturing manufacturing output output fell fell three three tenths tenths of of a a percent percent well well I'll I'll put put it it on on plants plants was was down down one one point point three three percent percent automakers automakers have have been been hurt hurt by by supply supply chain chain problems problems especially especially shortages shortages up up this this semi semi conductors conductors that that go go into into cars cars output output at at utilities utilities was was also also down down one one point point five five percent percent reflecting reflecting the the unusually unusually warm warm weather weather in in December December mining mining output output which which includes includes oil oil and and gas gas production production was was the the only only major major category category to to show show an an increase increase a a gain gain of of three three percent percent Ben Ben Thomas Thomas Washington Washington

Ben Ben Thomas Thomas Federal Federal Reserve Reserv Ben Ben Thomas Thomas Washingt Washington
Civilizations That Most Effectively Channel Energy Win

The Charlie Kirk Show

02:06 min | Last week

Civilizations That Most Effectively Channel Energy Win

"So money is monetary energy. Now just a good rule for life, civilizations that most effectively channel energy win. That's an interesting thing to think about. I want you to ponder that. That's a podcast or a radio show for a different time. For example, when the United Kingdom fought the dervishes, they had machine guns, the United Kingdom did. The dervishes had camels and horses. Whoever better used energy won that battle. Whoever was better able to use technology won that battle. Now, after World War I, almost instantaneously, when World War I broke out, almost every country in Europe went off the gold standard and went to some Fiat currency. Almost instantaneously, almost immediately. This was to help finance the war. In order to fund the war machine, they needed to get to some sort of floating or Fiat currency. They began the process of debasing their currency. Now, in 1917, America passed the income tax and also we passed something called the Federal Reserve act. This was passed by then progressive former college president head of Princeton University, Woodrow Wilson, which was the beginning stage that set the framework of the central banking system. Throughout the 20s and 30s, it became more clear that in order to finance especially the 30s to finance FDR's massive government programs, we had to further debase and devalue our currency. And finally, Richard Nixon, he kind of slammed the door on a multi decade project of ending the gold standard and transitioning to a Fiat currency by basically going outside of anything that is backed by metallic or objective or finite value and went into an infinite value monetary

United Kingdom Fiat Europe Woodrow Wilson Princeton University Federal Reserve America FDR Richard Nixon
Glenn Beck Explains Who BlackRock, Inc. Is

Mark Levin

01:45 min | Last week

Glenn Beck Explains Who BlackRock, Inc. Is

"I mean John Kerry is a very big role player in this here in America The Federal Reserve is gigantic in it The Federal Reserve has one of the tear people of BlackRock Advising the treasury the Federal Reserve has BlackRock in it Some people are president BlackRock is probably the biggest investment firm out there It dwarfs Goldman Sachs Most people haven't even heard of BlackRock They are the ones that are going out right now and buying houses 50% over asking price They are the ones who came up with what's called ESG environmental social and governance scores which everyone will have You already probably have one If you're with one of the big stock brokers if you look at your 401k it will probably report an ESG score That score is what's going to allow you to work to eat to move to buy things to bank because if you have a low ESG score if you're not high on social justice if you're not high on global warming or your business that you work for or you run doesn't have the right governance doesn't have enough women or blacks running it then you aren't going to be able to do business with the banks They will find you as a risk That's the thing that BlackRock has

Federal Reserve Blackrock John Kerry Goldman Sachs Treasury America
Fed survey finds economy growing modestly despite COVID

AP News Radio

00:45 sec | Last week

Fed survey finds economy growing modestly despite COVID

"The the federal federal reserve's reserve's latest latest survey survey of of regional regional business business conditions conditions finds finds the the economy economy was was still still growing growing is is twenty twenty twenty twenty one one ended ended despite despite the the Omicron Omicron search search of of coronavirus coronavirus cases cases the the fed's fed's twelve twelve regional regional banks banks found found the the economy economy growing growing at at a a modest modest pace pace with with ongoing ongoing supply supply chain chain disruptions disruptions and and labor labor shortages shortages holding holding growth growth back back the the survey survey known known as as the the beige beige book book says says optimism optimism remains remains generally generally high high expectations expectations for for growth growth over over the the next next several several months months cooled cooled somewhat somewhat has has covered covered nineteen nineteen cases cases spying spying to to close close out out the the year year many many regions regions reported reported a a sudden sudden pull pull back back in in spending spending on on leisure leisure travel travel hotels hotels and and restaurants restaurants the the beige beige book book findings findings will will form form the the basis basis for for discussions discussions when when the the fed fed holds holds its its next next policy policy setting setting meeting meeting later later this this month month Ben Ben Thomas Thomas Washington Washington

Federal Federal Reserve FED Ben Ben Thomas Thomas Washingt Washington
US consumer prices soared 7% in past year, most since 1982

AP News Radio

00:52 sec | Last week

US consumer prices soared 7% in past year, most since 1982

"Inflation inflation keeps keeps soaring soaring with with American American consumers consumers seeing seeing big big jumps jumps in in prices prices consumer consumer prices prices were were up up seven seven percent percent last last month month from from a a year year earlier earlier the the highest highest inflation inflation rate rate in in forty forty years years wiping wiping out out pay pay raises raises many many Americans Americans have have been been getting getting during during the the economy's economy's pandemic pandemic recovery recovery and and making making it it harder harder for for some some households households to to afford afford even even basic basic expenses expenses like like food food housing housing and and transportation transportation federal federal reserve reserve chair chair Jerome Jerome Powell Powell said said yesterday yesterday the the central central bank bank mistakenly mistakenly thought thought supply supply chain chain issues issues that that have have helped helped drive drive oil oil prices prices would would not not last last nearly nearly this this long long and and the the fed fed will will act act as as needed needed to to curb curb high high inflation inflation if if we we have have to to raise raise interest interest rates rates more more over over time time we we will will poll poll show show inflation inflation started started displacing displacing even even the the pandemic pandemic as as a a public public concern concern posing posing a a political political threat threat to to the the by by the the administration administration and and congressional congressional Democrats Democrats Sager Sager mag mag ani ani Washington Washington

Food Food Housing Housing And Jerome Jerome Powell Powell Central Central Bank Bank FED Administration Administration Sager Sager Ani Ani Washington Washington
Chief Justice Roberts Receives Highest Approval Rating Among Federal Leaders: Poll

Mike Gallagher Podcast

00:34 sec | 3 weeks ago

Chief Justice Roberts Receives Highest Approval Rating Among Federal Leaders: Poll

"Supreme Court chief justice John Roberts holds the highest approval rating of all senior leaders in the U.S. this according to a new Gallup poll that was released yesterday. More than half of Americans hold a favorable view of Roberts, Federal Reserve chairman Jerome Powell, and director, get this now. You ready? Director of the national Institutes of allergy and infectious disease, doctor Anthony Fauci. That was a surprise he Fauci is even more popular. Than Joe Biden and Kamala Harris.

Chief Justice John Roberts Jerome Powell Supreme Court National Institutes Of Allergy Federal Reserve U.S. Roberts Anthony Fauci Fauci Joe Biden Kamala Harris
Consumer prices up 5.7% over past year, fastest in 39 years

AP News Radio

00:41 sec | Last month

Consumer prices up 5.7% over past year, fastest in 39 years

"Consumer consumer prices prices soared soared again again last last month month I'm I'm Ben Ben Thomas Thomas with with a a look look at at the the numbers numbers the the commerce commerce department department reports reports prices prices at at the the consumer consumer level level were were up up five five point point seven seven percent percent over over November November of of last last year year that that puts puts inflation inflation at at its its fastest fastest pace pace in in thirty thirty nine nine years years following following a a five five point point one one percent percent rise rise in in October October annual annual price price gains gains are are running running well well above above the the federal federal reserve's reserve's two two percent percent target target for for inflation inflation the the commerce commerce department department report report also also shows shows consumer consumer spending spending was was up up in in November November six six tenths tenths of of a a percent percent that that solid solid though though down down from from October's October's search search of of one one point point four four percent percent personal personal incomes incomes meanwhile meanwhile rose rose four four tenths tenths of of a a percent percent November November slightly slightly lower lower than than October's October's gain gain Ben Ben Thomas Thomas Washington Washington

Commerce Commerce Department D Ben Ben Thomas Thomas Federal Federal Reserve Ben Ben Thomas Thomas Washingt Washington
Industrial production increases 0.5% in November

AP News Radio

00:43 sec | Last month

Industrial production increases 0.5% in November

"Production production is is picking picking up up across across U. U. S. S. industries industries I'm I'm Ben Ben Thomas Thomas with with details details the the federal federal reserve reserve reports reports industrial industrial production production increased increased five five tenths tenths of of a a percent percent in in November November without without put put at at the the nation's nation's factories factories reaching reaching its its highest highest level level since since January January twenty twenty nineteen nineteen manufacturing manufacturing output output rose rose seven seven tenths tenths of of a a percent percent led led by by an an ongoing ongoing rebound rebound in in the the auto auto sector sector however however production production at at auto auto plants plants remains remains more more than than five five percent percent below below this this time time last last year year as as carmakers carmakers continue continue to to deal deal with with supply supply chain chain issues issues particularly particularly a a shortage shortage of of computer computer chips chips in in other other sectors sectors aerospace aerospace showed showed strong strong numbers numbers in in November November while while in in nondurable nondurable manufacturing manufacturing gains gains were were seen seen in in textiles textiles paper paper and and plastics plastics utility utility production production was was down down Ben Ben Thomas Thomas Washington Washington

Ben Ben Thomas Thomas Federal Federal Reserve Reserv Ben Ben Thomas Thomas Washingt Washington
Fed Sees 3 Rate Hikes Next Year as It Pivots to Combat Inflation

The Trish Regan Show

00:57 sec | Last month

Fed Sees 3 Rate Hikes Next Year as It Pivots to Combat Inflation

"We are now looking quite seriously folks at what I call Biden inflation. It doesn't have to be like this, but it's like this because we got bad policy at work and not just bad policy. From The White House and from Congress, but bad policy from the Federal Reserve as well. It's almost like they're flipping things now. Jerome Powell is coming out and saying, oh, you should expect three rate hikes in 2022. The market actually welcomed that news as I believe the market should and should continue to do that because, hey, if we can cut back on this inflation now, that would be really, really helpful. I don't know how much they're going to be able to rein it in. Sometimes, once this thing's left the station, it gets very tricky. But Jerome Powell promising that we're going to get three hikes in 2022. So interest rates are going up. So, you know, if you're going to refinance your house, you probably want to do that sooner rather than

Jerome Powell Biden Federal Reserve White House Congress
Federal Reserve: Expect 3 interest-rate hikes in 2022

AP News Radio

00:48 sec | Last month

Federal Reserve: Expect 3 interest-rate hikes in 2022

"With with inflation inflation surging surging the the federal federal reserve reserve it's it's pulling pulling back back its its support support for for the the economy economy at at a a quicker quicker pace pace I'm I'm Ben Ben Thomas Thomas with with the the latest latest in in an an abrupt abrupt policy policy shift shift the the fed fed announced announced it it will will shrink shrink its its monthly monthly bond bond purchases purchases at at twice twice the the pace pace it it previously previously announced announced likely likely ending ending them them in in March March the the bond bond purchases purchases were were intended intended to to hold hold down down long long term term interest interest rates rates but but the the fed fed says says they're they're no no longer longer needed needed to to boost boost the the economy economy with with unemployment unemployment falling falling and and inflation inflation at at a a near near forty forty year year high high that that accelerated accelerated timetable timetable puts puts the the fed fed on on a a path path to to start start raising raising interest interest rates rates in in the the first first half half of of next next year year and and the the fed's fed's new new forecast forecast suggests suggests the the central central bank bank will will raise raise its its benchmark benchmark short short term term rate rate now now pin pin their their zero zero three three times times next next year year up up from from just just one one rate rate hike hike projected projected in in September September Ben Ben Thomas Thomas Washington Washington

FED Federal Federal Reserve Ben Ben Thomas Thomas Ben Ben Thomas Thomas Washingt Washington
With Inflation Still Hot, the Fed Takes a Step Towards Rate Hikes

The Dan Bongino Show

01:27 min | Last month

With Inflation Still Hot, the Fed Takes a Step Towards Rate Hikes

"You know the fat just put out the statement about interest rate hikes and it just goes to show you how the economy we're living in now It's not based on I shouldn't say it's not based on I don't like hyperbole I'm like Joe Biden Angelo negri said Joey baby You gotta be real It's a large swath of what we perceive as value in our economy right now are not in fact value It's fabricated Federal Reserve driven monetary easing value that's driving up the price of assets like the stock market Very simply stated the fed just came out and said hey it's a Chiron on Fox now breaking news Expect some interest rate hikes in 2022 In 2022 folks we should be tapering and hiking the interest rate dramatically right now We are in the midst of an inflationary crisis We have not seen since 1982 You know I was a kid I was watching GI Joe cartoons the last time we saw an inflationary crisis is bad It's time to squeeze out and start draining the money supply from the economy The excess money supply right now So the stock market the point I was going to make without trying to overly complicate things the stock market which was in the red all day which was down The minute it comes out that there's going to be interest rate hikes The stock market jumped It's now up 64 It's been fluctuating between like 50 and 80

Angelo Negri Joey Baby FED Joe Biden Chiron Gi Joe FOX
America Braces for the Highest Inflation Reading in Nearly 40 Years

The Trish Regan Show

01:22 min | Last month

America Braces for the Highest Inflation Reading in Nearly 40 Years

"Because inflation is just one of those things I think that we all need to be on guard for. Now, tomorrow, tomorrow, we are going to get a read on inflation. It's expected to tick higher to 6.8% up from 6.2% and look, that's a lot. I mean, that would be if this comes in at 6.8% and I have a feeling it's gonna be quite high and there's a potential for it to be even higher. And that tells us we're basically looking at a 40 year high not since Reagan's first term have we seen inflation like this. And I'm getting kind of sick and tired of people blaming it on the supply issues and constraints associated with transitory inflation. Heck, even the Federal Reserve knows now, it's no longer transitory. This is inflation that's really starting to settle in. And the problem with this is once it starts to really seep into an economy, it's very hard to get rid of. We know this, just go back to the late 70s in the 80s. Look at what Volker had to do. To get rid of it. I think that Volker would be really disappointed. Right now, in this Federal Reserve. And it's one of the reasons why I keep encouraging people to look at look at how to hedge it out and to me one of the best ways in those few different ways. One of the best ways to do that is via gold.

Federal Reserve Volker Reagan
Omicron Worries Tip the Markets

The Hugh Hewitt Show: Highly Concentrated

01:10 min | Last month

Omicron Worries Tip the Markets

"Brian, I confess, I have never seen a market like this down a thousand points up a hundred points at that time. It's all over the place. Looks like another huge day on the market today. What is going on? Well, there's number one omnicron, right? So we're worried that we're going to shut down the economy again. And that crushed the market in March of 2020. Second thing is that Jerome Powell, the chairman of the Federal Reserve is now worried about inflation. It wasn't worried about inflation. Kept calling it transitory, then said, you know, I think we need to retire that word. I am basically saying I'm wrong. It's not transitory. I printed too much money. So it's time to stop printing money. And now everybody's worried that all of a sudden he's going to raise rates really rapidly. And then finally, everybody decided well, maybe Omni grind in that bad. And maybe vowels just bluffing. And so that's what happens. We just get whips on all over the place.

Jerome Powell Brian Federal Reserve Omni
Survey: Business economists foresee persistent inflation

AP News Radio

00:55 sec | Last month

Survey: Business economists foresee persistent inflation

"The the nation's nation's business business economists economists have have raised raised their their forecast forecast for for inflation inflation the the latest latest survey survey by by the the national national association association for for business business economics economics predicts predicts an an extension extension of of the the price price spikes spikes thought thought to to be be largely largely the the result result of of bottlenecks bottlenecks supply supply chains chains a a panel panel of of forecasters forecasters expects expects consumer consumer prices prices to to rise rise six six percent percent this this quarter quarter from from a a year year ago ago that's that's an an increase increase from from the the five five point point one one inflation inflation forecast forecast predicted predicted in in September September seventy seventy five five percent percent of of the the panel panel expects expects the the federal federal reserves reserves preferred preferred inflation inflation gauge gauge will will increase increase by by four four point point nine nine percent percent far far above above the the central central bank's bank's two two percent percent target target and and sixty sixty six six percent percent said said they they think think wage wage gains gains will will keep keep inflation inflation elevated elevated over over the the next next three three years years forecasters forecasters expect expect the the gross gross domestic domestic product product to to expand expand by by five five point point five five percent percent this this year year and and three three point point nine nine percent percent in in twenty twenty twenty twenty two two that's that's a a robust robust bounce bounce back back after after a a three three point point four four percent percent drop drop in in GDP GDP last last year year a a majority majority of of any any beat beat panelists panelists say say they they think think the the flow flow of of goods goods will will begin begin to to normalize normalize in in the the first first half half of of twenty twenty twenty twenty two two Jennifer Jennifer king king Washington Washington

National National Association Central Central Bank Jennifer Jennifer King King Wa
Powell: COVID-19 variant clouds inflation, economic outlook

AP News Radio

00:48 sec | Last month

Powell: COVID-19 variant clouds inflation, economic outlook

"Federal federal reserve reserve chair chair Jerome Jerome Powell Powell says says the the fed fed will will consider consider shutting shutting off off its its support support for for financial financial markets markets sooner sooner than than expected expected in in a a bid bid to to fight fight high high inflation inflation Powell Powell says says price price increases increases have have been been a a worse worse than than expected expected and and will will last last longer longer than than anticipated anticipated certainly certainly through through the the middle middle of of next next year year and and tells tells a a Senate Senate panel panel the the fed fed may may move move more more quickly quickly to to dial dial back back old old for for low low interest interest rate rate policies policies he's he's also also a a warning warning about about the the Omicron Omicron variance variance impact impact on on the the economic economic recovery recovery greater greater concerns concerns about about the the virus virus could could reduce reduce people's people's willingness willingness to to work work in in person person which which would would slow slow progress progress in in the the labor labor market market and and intensify intensify supply supply chain chain disruptions disruptions Powell Powell says says the the variance variance leading leading to to warrant warrant certainty certainty about about inflation inflation which which is is already already at at the the three three decade decade highs highs Sager Sager mag mag ani ani Washington Washington

Federal Federal Reserve Reserv Powell Powell Jerome Jerome Powell Powell FED Senate Sager Sager Ani Ani Washington Washington
"federal  reserve" Discussed on Vox's The Weeds

Vox's The Weeds

06:37 min | 4 months ago

"federal reserve" Discussed on Vox's The Weeds

"So when i was a when. I was a young blogger. People talk about the taylor rule which came from a macro economist. John taylor this is i. Don't know it's like a formula. There's some variables in it. It says what the interest rate should be and for a long time. I don't think the fed ever should've of explicitly followed that. The taylor rule but the understanding was that this guy's work was fluential and that it was You know kind of a way to think about Monetary policy that that people took very seriously and during the great recession in it's sort of most acute phases. Even one thing people would say. Look mathematically like the taylor. Rule says we should be in deeply negative interest rates which were not going to do for various reasons. And that's part of the case for obama's fiscal stimulus. So you know it's like you can do things in the economy in this taylor framework. It's not like a hawk all the time view but it says currently that like the fed should raise interest rates to five percent. Basically right way. And that is a view that was kind of predominant way of thinking until really really really recently would say that look. You can't let inflation get above two percent or stay there for any meaningful period of time because people will come to believe that. There's inflation that there's going to be like right now at the price of cars has gone up a lot so you can have a car buying frenzy right in which everyone who is even vaguely thinking about buying a car is like holy shit car. Prices are going up faster than incomes. I better by car like as soon as i possibly can. And then the prices go up and up and up and like we're in a disaster so the fed needs select slammed the brakes right now even if it throws people out of work we need to make it that like you just cannot afford a car and that's the only way we're going to get this back done and it sounds crazy but like i think it's important to understand that like that was how we were doing things like really really recently that like not just it would be undesirable to have three to four percent price growth but that it would be like apocalyptic and at any cost we had to stop. That mapping. yeah. And i think the a critique of the kind of inflation targeting regime which involved the taylor rule that became influential started kind of early in the two thousand tons of his wasn't starting with the economic blogosphere about people like yourselves reinvent many others. Our were very influential in pushing. The argument was that the inflation target becomes like ceiling. Which is another way of saying about you. Know your target metaphor which is to say that if you get that nervous about inflation being over target. You're not actually aiming at a target. You have a ceiling now. Inflation will always be a little bit below and this powerpoint between nineteen. You know if you're always a little bit below target you can actually start to drift down inflation expectations and thus inflation will drop and thus rates have drop lower and you end up in this kind of negative dynamic where you're always on the under heated side. You're always like in the wrong gear on the slow and you're always never quite getting the economy back to speed as quickly and as fast robustly issue cut and so having much warren explicit acknowledgement that. The fed wants to air on both sides understanding that on average it will hit its target gives it opportunity to take periods like right now and instead of just saying like the numbers of the number like the equations you know now through now we gotta we gotta stop everything and slam on the brakes and put the economy into a quasi recession. Slow down you can actually look at it much more holistically and say okay is. This sectoral is transitory. Is this going to decline. You know we still retain the tools to slow down economic activity. But it gives us a framework understand. Like if we actually think this is transitory if this reflecting economy that is coming back to life so rapidly it's causing some bottlenecks in supply chain issues but it will resolve itself. Well you know we have the bandwidth to sit this out and wait a little bit to take action which is important to give the economy time especially for a recession like this so i wanna pivot a little bit and ask you about kind of big picture theory because you know in addition to being a a great monetary policy noar. You're the author of a book freedom from the market which we talked about on this show and you know it's Well it's not about this. But it's about you know the limits of a market society and neoliberalism and i always get the sense that part of the disjuncture between what you and i have been talking about here and the way some progressive activists things is that this doesn't sound freedom from the market marquis enough to them like we're talking about solving problems and making the world a better place but like nothing has been de commodified. Nothing has been redistributed necessarily from anybody. Where like saying some guys on a board need to make somewhat better technocratic decisions and then people can just like get jobs more easily or higher pay and so i wonder i mean because you you really in this space you know. That's like critical of the market society. And how do you how do you think about that. I mean who do you hear from. How do you talk to people. So there's definitely a. I don't think it is reflected in mainstream journalism or progressive activism. But there is a sort of marxist critique of of left cantinas. I would insert myself a left kensington in my political orientation my economic orientation. There's a kind of like marxists left. Critique which says like this ultimately won't work because the battles between employers employees and and you can't massage system that's prone to collapse and i think that's outside this conversation and certainly i think we can do better on keynesian economics and then maybe we'll figure that other stuff out later. Yeah i mean. That's not really what i mean. I mean more. Just the sort of psychic emotional. You know interpretation that. I think people want to. They want to fight the bad guys on one level. And also they want to bolster so we. There was a version not that they were super left wing but like there was a version in in late obama of like a progressive structuralist critique of the economy that was like look participation has fallen in this shows. We need new investments.

taylor fed John taylor obama warren marquis kensington
"federal  reserve" Discussed on Vox's The Weeds

Vox's The Weeds

08:00 min | 4 months ago

"federal reserve" Discussed on Vox's The Weeds

"I think the the lack of cost is important to dig into here because obviously there is a cost to participants in the industry who enjoy having very high return on capital. We talk about this and yesterday's show but you know if you can find your investment with a lot of debt then your upside is enormous. The investment pays off. Well so you know people like to do that if they can get away with it normally in life. It's hard to get people to lend you. Money to make speculative investments. That's a heads. I win tails you lose. Sort of situation. But if there's a sense that you might get bailed out you know you can do it. And this is why. We need to regulate banks. The people involved with like you to believe that this is very costly to the economy that by making it less profitable to sort of be in banking. You're going to reduce the availability of credit of capital two people who who rely on banks to get the money but you say that that's not the case. So why is it that you know if i wanna mortgage. I want a small business loan like why doesn't it. Putting tighter capital requirements and banks make that harder for me as a customer sure so from the bank's point of view it is substituting one form of funding for another so instead of funding with dat is funding with equity or retained earnings And so it is. Substituting on the liabilities is basically saying we're going to change our balance sheet so that we're not using this thing that's we like doing more. And certainly at the margins we think that the cost of switching from one to the other has very little cost for that bank itself like if you increase requirements ten percent maybe the cost of capital goes up less than half a percent like. That's the kind of small basis points kind of change and even those might be exaggerated. It's really tough to do these studies. But that's that's the kind of scale talking about also particularly for real economy firms that need money for investments. They themselves have other options to i. You know your tidings regulations on the very biggest banks who we think have real stressors but like there are other things that can lend community banks can lend other your internalizing the cost of the failure of these largest banks over fifty billion dollars in size but there are other financing instruments in the economy as well so between those two things. There's a tendency to think that this has very little low cost and we see this because since two thousand eight to the cova crisis we essentially more than double capital requirements in banking system. And it's across all measures and there's a lot of different ways to to measure this. But in general the banks become significantly more capitalized in the aftermath of the crisis in the years after the crisis and then they keep that rate there because dodd frank forces them to even though they're angry about it and there's no system wide decline in lending or increase in lending causse because those are also largely determined by the federal reserve in aggregate demand Another way to approach is that if an activities profitable someone will lend to it. And they'll find a way to lend to at and that's kind of the flip side of that equation so we did this big experiment where we rapidly increased capital requirements the economy and basically no one says that it had a huge cost. The fight is whether or not the causes even really that measurable and you can just go out. I mean go apply for mortgage tomorrow. Like it's. There's a lot of credit available in the united states of america. But then so okay so. We were going to talk about pout so capital requirements. I went up under obama because of dodd frank and then they went down again somewhat Under under the trump administration. So the reason talk about fifty billion i think is a is a good way to approach a set of things that were deregulated so people ask. Where was the big bipartisan infrastructure. Bill of the trump years and they're actually was one in two eighteen. There was a big and push to deregulate. Parts of dodd frank. It was called something or willion. What is it. The economic growth regulatory relief and consumer protection act Which was basically very few of any of those things and what it did was congress that we're going to take that fifty billion and move it to two hundred and fifty billion and say we're no longer gonna worry about fifty to fifty if there's any worries in between there. The federal reserve is authorized explicitly in this act to step in and do things to make sure baseline projections are in. But we no longer want this enhanced regulation until you get to fifty because we as congress bipartisan group. Wanna really just focus on the biggest place. Now there's a lot of regional mid size banks in that which are very influential and purple states and very influential in terms of their power in congress and they asked for this and they got it. We were very opposed to it. Financial reform community in general is very post to it. I think there's argument. You could have moved. Fifty to one hundred janet yellen when she was at the fed barney frank himself later on so that might have been good but going. The fifty was really far beyond people thought that deregulated several trillion. Dollars on an important way. And these are like you know. Mnt bank santander ameriprise. I mean these. Are you know like have stadium. Sponsorship deals they're large large enterprises. They're not the biggest banks in america. But they you know. I mean i think you have. I think should have at least the question of can you really wind these these firms down in a clear well organized way you know. And that's the kind of basic regulatory concern. And they're being now let off the hook to an extent. Yeah absolutely and so jay-paul becomes ferries of chair and quarrels Randy cross Charge of regulations within the fomc. And they do two things that really upset. The financial reform community one is that they basically zero out regulations. That weren't even in that bill for firms between one hundred and two hundred and fifty billion in size so where we fought against this bill back back when it was passed in a lot of moderate. Dem staffers were like you. Know if there's a real problem between a hundred and two hundred billion size like the federal step in was like no. They're not like this like it felt like almost like oh my god you really do think like view. Believe that i think you you might even just be naive here. And the fed not only didn't stop and they removed living will requirements. They just eliminated them for banks up until two hundred and fifty billion and they eliminated some liquidity capital requirement but basically a certain kind of cap requirement that says you need to be able to make payments for thirty days in case the markets frees up on. They just eliminated that for up to fifty so they took what congress told them to do. Which is to say taylor and right size for up to two fifty and just sweat a lot of stuff away for banks that don't get the headlines. The bad actors in the financial economy away like goldman sachs might get a headline. That's very bad or do things that really stand out in the public but banks that do pose a real financial risks. That could collapse and could have real problems. They do that the next thing they do and they do this over the next several years going into cove. Ed is that they say you know what we're so interested. In only focusing on the largest banks we're going to extend a significant amount of regulatory relief in these areas to banks up to seven hundred billion dollars in size so they are now taking kind of with the directive was that bill but then going way outside the legislation of it and basically saying we are going to make living wills required less offense like every six years for banks up to seven hundred billion in size. And we're going to significantly weakened capital requirements particularly the kind of capital requirements. That are lake the most strict but also the ones the banks hate the most things like liquidity ratios. And things like that. And so now you've taken congress saying like we want to weaken on some of these mid size banks and then the fed goes further in the weakening of those banks and then takes way up the the scale..

dodd frank fed congress janet yellen Mnt bank santander ameriprise Randy cross united states of america barney frank obama fomc jay paul goldman sachs taylor Ed
"federal  reserve" Discussed on Vox's The Weeds

Vox's The Weeds

06:10 min | 4 months ago

"federal reserve" Discussed on Vox's The Weeds

"At my guest today. Returning weeds guest is my council from the roosevelt institute. We are doubling down on the federal reserve here in the waning days of my tenure on the weeds. There's a topic that is near and dear to my heart. I wrote a piece a decade ago. Like urging progresses to pay more attention to this subject. It is getting a little bit more attention now. But it's gonna get more attention on this show dammit. I'm sure there's gonna be some cheap ratings ploys coming after my time. But mike is is is a great guest to talk about this because he is really knowledgeable about the regulatory issues. That have been sort of in. Play the discussion of j. powell's tenure. But i think not actually talked about that much detail. So i mean i guess to start is just like what happened with banking regulation under the trump administration or powell's joint tenure with trump like what is the critique about sure. Can i start one. Step back and talk a little bit about what dot frinta just as a backer yeah. Let's go back dodd-frank so dodd-frank so dodd-frank in response to the financial crisis of two thousand eight. Remember that you buy ministration past the big one. The ministration past the dodd frank financial Reformat did a lot of things but things very relevant for pow and trump is that it took banks that were fifty billion dollars in assets is over and put them under enhanced prudential regulations on these are largely largest fifty six. These are not community banks which tend to be under a billion in size dodd-frank said in the statue wrote down fifty billion dollars. If you are above this size you are subject. To a lot more scrutiny. In two pieces. That are very relevant here. When is enhanced capital requirements. Which is to say that banks like that need to fund themselves more with equity. They need to fund themselves in a such that they can take losses without collapsing or panicking or failing in a catastrophic and quick way and another thing that they did was something called living. Wills which is. The banks had right down a plan for if they failed. How could they fail. Leman brothers went into bankruptcy and caused a huge panic. And the idea was that for financial firms bankruptcies not a really good option and for smaller banks committee bank. You have the fdic which can kind of go in and take over a failing firm. But you couldn't do that with these bigger banks. These megabanks banks are involved in a lot of complicated financial instruments or have multiple international exposures and so forth so the idea was like have the banks fund themselves with more equity in a lot of different ways. There's a lot of different types of capital requirements and also right down and be prepared to fail in such a way that would make it easier for officials at the fdic to take them over and wind them down with small bank to just go even more further field right. I was in in in maine last summer. There's a lot of small banks. There was in texas where there's a lot of very small banks and if like a really small bang goes bankrupt the will usually just like sell it to some other bank that you know wants the branches and the facilities or if nobody wants that they take their little pool of fdic money and just pay out the people who had the deposits there and they go someplace else with business. And it's like it's no biggie. You get up to these. Fifty biggest banks keycorp allies and way up to city groups bank of america and it just it wouldn't work logistically the antitrust implications of trying to sell wells fargo to another giant bank would be enormous. You couldn't just do it over the weekend. Obviously and also the banks are involved in like a million different lines business and that sort of the point about the living wills right is that you need to provide some kind of documentation of like what are you doing with your business so that these different lines of business could be frozen or separated or dealt with in a reasonably swift time period rather than just kind of chaotic bailout or chaotic bank failure. Right i mean the the concern was that in the financial crisis you had this sharp disjuncture you could do the bankruptcy option which has a lot of negative consequences for other people or you could do the bail out option which seems to have like not enough negative consequences for some of the people responsible for the failure of the bank. Yeah absolutely and though dodd-frank did a ton of stuff you know it harmonized consumer regulators into a dedicated consumer the consumer financial protection bureau. It moved derivatives into clearing clearing-houses. Did a ton of things when it came to the big banks banks over fifty billion dollars in size the banks and not just saying bank but like things that act like banks things that maybe our bank but also an investment bank things that our investment bank but act like a commercial bank. The kind of hodgepodge of bank holding company law and i am summarizing quickly in greatly here. So feel free to yell at me. On twitter handles dylan matthews. If you really those mentions with esoteric bank law if you're upset with the summary but when it comes to the biggest banks these are the big things like bank capital. Living wills are these are just core. These are not superfluous. These are not like nice to have. These are foundational for what you want to do. And they're the things where you really wanna go far because we think bancapital rules have very little cost for the economy as a whole you're largely just changing how banks themselves and users affirmed a lot of options. So the cost of those to the whole might even be zero. but they're very negligible in terms of like everyday people who need resources and financing and the benefits are quite big no matter what. The crisis is the crisis in the corporate sector capital requirements. And living wills help if it's in the household sector it helps if it's from climate change if it's from rapid decarbonisation no matter what the problem is these things help and living wills also just good internal risk management at just like says you know you have to make sure you're going to do this because the failure point is where we really hit the road so this is exactly where we want to have strong regulations i. Let's no..

frank roosevelt institute dodd fdic powell Leman brothers keycorp federal reserve Wills mike wells fargo bank of america maine dylan matthews texas twitter
"federal  reserve" Discussed on Vox's The Weeds

Vox's The Weeds

03:20 min | 4 months ago

"federal reserve" Discussed on Vox's The Weeds

"It doesn't make sense in the real world as opposed to just as like a take about how well if you did everything to the max. You could do a lot because you know like you couldn't you couldn't write like the system has limits. I think yeah. There's also some slippage about what climate thing. You're trying to do that. You can sort of divided the proposals between ones that try to protect banks from the climate and one's try to protect the climate from the banks and those are quite different and have very different ramifications for the climate so some of the stuff about stress testing for for investing in fossil fuel assets trying to serve recognize climate. A systemic risk. You could make an argument. that vary indirectly. Like maybe if you do that then citibank will decide that it needs to serve put a price on carbon internally to offset its risk but basically what you're talking about is is trying to make banks adapt more to observe a world of rapidly changing climate to diversify their assets and ways to protect them. And it's not at all obvious to me that are trying to protect the banks. Themselves from collapse is going to have large effects on the actual climate. It seems more plausible to me that the bank's just serve restructure in ways that make them more resilient without actually changing what kind of activities or invested in the economy and on the opposite end of that of trying to protect the climate from the banks and trying to raise the cost of investing in specifically fossil fuel stuff. It's sort of funny to me that this conversation is happening at the same time that the three point five trillion dollar reconciliation bills being hammered out in congress which is said to include sort of a carrot as opposed to stick version of carbon tax where they pay utilities for meeting certain targets on renewable energy big subsidies for research and development on unclean energy. Some fees on imports. That are heavy. Users of fossil fuels are fines for utilities. That don't meet certain standards. All of that seems very straightforwardly like it will significantly reduce emissions and i think part of why people are pivoting their vision from that to the fed is they don't really believe joe manchin is going to go for a lot of that stuff and it's in fact really really hard to pass ambitious legislation through congress and it feels easier to like have an independent executive agency doing these things with wave of one but the fed does not do things with a wave of lawn aboard. Only some of the board is appointed by the president. A lot is appointed by local bankers and kansas city. Who do not share the sunrise. Movements views on these things and more importantly like i think there are like both practical and like more idealistic questions of democratic legitimacy like congress has passed a law saying that the fed has to maximize employment and stabilize prices. They have not passed any laws to the fed to do anything whatsoever on climate and it feels like the appropriate way to tackle. Climate change is for like congress to pass laws tackling climate change. What's actually speaking of that. Let's take a break. And then i wanna talk about who is actually in the mix.

citibank congress fed joe manchin kansas city
"federal  reserve" Discussed on Vox's The Weeds

Vox's The Weeds

07:59 min | 4 months ago

"federal reserve" Discussed on Vox's The Weeds

"Matthews. We're gonna do a good episode. We're going to talk about mass when you've done about bangladesh. We're gonna talk about the federal reserve. But i i have a sort of sad news to announce at the beginning. Which is that. I am going to be leaving the weeds After two more weeks of shows It's gonna be great. We're gonna be in great hands which were still and mind who've been doing an amazing job as hosts it's Sorry i feel sad. The weeds is very close to me. but you know i think it is. It is probably the the right time for everybody to Move on with things. Vox has some great ideas for the show and for a sort of final weeds episode one week from friday as recline and sarah cliff to excellent new york times reporters who people may remember as the original co host of the weeds with me are going to be coming back. We're going to be having a roundtable. We are going to really. We're gonna weeds it out. We're going to talk about. I think healthcare pricing reform proposals from the by the administration. Personally i spend a lot of time ranting and raving about monetary policy as. We're gonna talk to day. About drum powell. He is the chair of the federal reserve. Donald trump appointed him to that job Previously he had been put on the federal reserve board of governors by brock obama. But he's a republican. He was sort of. Obama was making a kind of a package of fed. Nominee is and this was someone who the obama administration economic team considered to be reasonable republican. Who they could sort of. Put there as a A sop to senate republicans than trump wanted to put sort of. I guess he put his like his own man in at the fed. It's not like he. And powell or like buddy is powell is a republican and steve mnuchin. It seems like feared trump. Toward powell over some other people who were fed. Outsiders who trump knew better. And i remember when this happened. You know when. I talk to x. Obama people and they all said you know we don't i don't know we. We don't think you should fire. Janet yellen but like powell is fine He'll do a fine job. I feel like he has done a pretty good job on the topics that i mostly care about. But there's a big push from the left to dump him and that has involved. I don't know like a bunch of different complaints but dill. What's what's your understanding of of what's going on short so As you say. There are a bunch of different sort of lines of criticism of jay powell and arguments for a replacement fed chair. I think the the two most significant ones Actually let's do. Three most significant ones the first and most basic is that he's a republican and democrats have a right to appoint their own person to run the fed. So brad delong. Who's in economist at berkeley. Who knows a lot about the fed knows. A lot of these players has been arguing for replacing powell basically on social circle grounds of yes. He's been very pro full employment right now but he's a republican has republican friends. There's no guarantee that he'll maintain those positions if he's under pressure from fellow republicans. Route the rest of biden's term. I'm sort of of that. For various reasons that will will go into the other. Two are financial regulation and climate change so the feds and it has a number of jobs but the two big ones are monetary policy. Making sure we have employment and that inflation is under control and banking regulation that major banks have accounts at the federal reserve. The fed Has a lot of regulatory power along with other agencies and how wall wow very very progressive on employment. I think is is less of a die. Hard true believer on increasing capital ratios for banks. Doing the kinds of reforms that liz warren and ends where the financial regulatory community and the democrat party wants and on climate change. This is not traditionally been something. That's considered part of the fed's purview. But i think there's a there's a movement to consider every part of the federal government as involved in greek effort to fight climate change which totally makes sense given the scale of the challenge and there are some boatswain specific things that i think activists in the space want like rating for bonds from fossil fuel projects as riskier and requiring banks that invest in things like that to hold more safe capital as a insurance against them as a way of sort of indirectly deterring them from investing more in fossil fuel projects. And a lot of other are more symbolic things like jay-paul took a while to join the group of central banks that were committing to do certain things on climate change And i think people. I've i've talked to in rat on. That would say that on. Its own doesn't do a whole lot. But it's just sort of a sign of commitment and him being later than the european central bank or the bank of england or the bank of canada looked bad to them. So that's my attempt to to serve. Charitably relate these critics jay powell i think you have a less charitable take on any of these i mean i have in some ways i give frankly more credence to to long's point that you might just want a democrat in the office. I thought that like donald. Trump's stated reasoning for firing janet. Yellen which was that. She was a democrat. Just like makes perfect sense to me. And i thought he handled it really well. Honestly like trump always often handled things poorly but he he didn't trash yellen. He didn't come up with some whole elaborate. Set of like fake reasons. He didn't blame her for anything. I think he. He praised her in fact as having done a good job but he said he wanted own person in there and he did it and in a weird way if that had been the whole thing right like if this was the whole push from day one was just like you put in a democrat not because republicans are necessarily bad but because people are impacted by subtle psychological biopsies. You want somebody who is friends. With lots of democratic party hill staffers democrat ex democrat lobbyists by administration appointees just somebody who liked at the margins. Biopsies will be to say this is good. I would really sort of buy into like. I just feel like he was a huge problem with ben brunelleschi's tenure at the fed. Not that not that. He was like sabotaging the economy because he's a republican but like he was a republican so he thought that the obama administration's policies were misguide and was inclined to give a lot of you know this decisions under uncertainty right so you're inclined to give a lot of credence to the idea that this president who you don't support whose policies you disagree with is like actually the source of problems and that you were being asked to like bail out this bad regime versus you. Were trying to help you know. Be be helping partner in in something that's good. That'll jimmy can argue whether that applies to the current situation. And and i have some doubts. It it's what i thought. Last winter i would say i find the climate argument very puzzling right like literally believe that we should be pulling every climate lever available. Then you should appoint a fed chair. Who will deliberately plunge the economy into a depression because that would greatly reduce short-term co two emissions now..

fed powell jay powell obama administration sarah cliff excellent new york times federal reserve board of gover steve mnuchin Obama Janet yellen brad delong liz warren Matthews Donald trump bangladesh dill buddy Yellen senate biden
"federal  reserve" Discussed on The Breakdown with NLW

The Breakdown with NLW

03:34 min | 6 months ago

"federal reserve" Discussed on The Breakdown with NLW

"Wasting asset gold will always glitter but novelty by definition fades bitcoin. And its ilk will. Accordingly almost certainly remain a risky and speculative investment rather than a revolutionary means of payment and are therefore highly unlikely to affect the role of the us dollar or require a response with the cbc. Still even with all of this. What has really gotten people's attention is quarrels discussion of stable coins. Something like we said. That's an increasing concern for many in positions of power. So let's read what he has to say about this. Some commentators argue that the united states must develop a cbc to compete with us dollar stable coins. Stable coins are an important development that raised difficult questions for example how would widespread adoption of stable coins affect monetary policy or financial stability. How might stable coins affect the commercial. banking system. do stable coins represented fundamental threat to the government's role in money creation. In my judgment. We do not need to fear stable coins. The federal reserve has traditionally supported responsible private sector innovation consistent with this tradition. I believe that we must take strong. Accounting of the potential benefits of stable coins including the possibility that a us dollar stable coin might support the role of the dollar in the global economy for example a global. Us dollars stable coin network could encourage use of the dollar by making cross border payments faster and cheaper and it potentially could be deployed much faster and with fewer downsides than a cdc and the concern that stable coins represent unprecedented creation of private money in this challenge. Our monetary sovereignty is puzzling given that our existing system involves indie depends on private firms. Creating money every day now. This doesn't mean in quarrels estimation that there shouldn't be regulation in fact the legitimate recognition of private stable coins would come with more not less legislation quote. We do have a legitimate and strong regulatory interest in how stable coins are constructed and managed particularly with respect to financial stability concerns the pool of assets that access the anchor for a stable coins value. Could if use of the same coin became widespread enough create stability risk if it is invested in multiple currency denominations if it is a fractional rather than full reserve if the stable coin-holder does not have a clear claim on the underlying asset or if the pool is invested in instruments other than the most liquid possible principally central bank reserves in short short-term sovereign bonds all of these factors create run risk possibility that some triggering event cause a large number.

cbc Us federal reserve cdc government
"federal  reserve" Discussed on CoinDesk Podcast Network

CoinDesk Podcast Network

05:35 min | 6 months ago

"federal reserve" Discussed on CoinDesk Podcast Network

"And are therefore highly unlikely to affect the role of the us dollar or require a response with the cbc. Still even with all of this. What has really gotten people's attention is quarrels discussion of stable coins. Something like we said. That's an increasing concern for many in positions of power. So let's read what he has to say about this. Some commentators argue that the united states must develop a cbc to compete with us dollar stable coins. Stable coins are an important development that raised difficult questions for example how would widespread adoption of stable coins affect monetary policy or financial stability. How might stable coins affect the commercial. banking system. do stable coins represented fundamental threat to the government's role in money creation. In my judgment. We do not need to fear stable coins. The federal reserve has traditionally supported responsible private sector innovation consistent with this tradition. I believe that we must take strong. Accounting of the potential benefits of stable coins including the possibility that a us dollar stable coin might support the role of the dollar in the global economy for example a global us dollars stable coin network could encourage use of the dollar by making cross border payments faster and cheaper and it potentially could be deployed much faster and with fewer downsides than a cbc and the concern that stable coins represent unprecedented creation of private money in this challenge. Our monetary sovereignty is puzzling given that our existing system involves indie depends on private firms. Creating money every day now. This doesn't mean in quarrels estimation that there shouldn't be regulation in fact the legitimate recognition of private stable coins would come with more not less legislation quote. We do have a legitimate and strong regulatory interest in how stable coins are constructed and managed particularly with respect to financial stability concerns the pool of assets that access the anchor for a stable coins value. Could if use of the soon became widespread enough create stability risk if it is invested in multiple currency denominations if it is a fractional rather than full reserve if the stable coin-holder does not have a clear claim on the underlying asset or if the pool is invested in instruments other than the most liquid possible principally central bank reserves in short short-term sovereign bonds all of these factors create run risk possibility that some triggering event cause a large number of stable coin holders to exchange their coins all at once for other assets and that the stable coin system would not be able to meet such demands while maintaining a reasonably stable value. But these concerns are imminently addressable indeed. Some stable coins have already been structured to address them when our concerns have been addressed. We should be saying yes to these products rather than straining to find ways to say no indeed the combination of imminent improvements in the existing payment systems. Such as various instant payment initiatives combined with the cross-border efficiency of properly structured stable coins could well make superfluous any effort to develop a cbc. I'd like to just note here if you go back and listen to some of my podcast about cdc's and stable coins. Before that. i have said on at least a couple of occasions that if you look just at a government producing a cbc the us is far behind. If on the other hand you include the use of private us denominated stable coins as an example of this new type of money. The us has an enormous lead. That effectively is what quarles is saying. Here also goes in depth on what he sees is still to unexplored. Risks of cdc. His main points are one that quote a. federal reserve cbc could create considerable challenges for the structure of our banking system. Which currently relies on deposits to support the credit needs of households and businesses to could undermine the value of banks competing for customers three. It could present a huge target for attacks and cyber threats for it would demonstrate the challenge of preventing illicit activities while also respecting writes quote. Maybe challenging to design a cdc that respects individuals privacy while appropriately minimizing the risk of money laundering at one extreme. We could design a cbc. That would require cdc holders to provide the federal reserve detailed information about themselves and their transactions. This approach would minimize money laundering risks but would raise significant privacy concerns at the other extreme. We could design a cbc that would allow parties to transact fully anonymous basis to approach. What address privacy concerns but would raise significant money laundering risks. The fifth and final risk or question that he has is that it could be expensive for the federal reserve to design and maintain this thing so all in all a lot of folks really like this speech to give you just a couple sample reactions. Nick carter tweeted. So why do. I like this talk so much. A number of reasons. First of all he contest the framing of the cbc enthusiasts correctly pointing out the most dollars are digital. He also points out. That most dollars are effectively fed dollars. Go through fdic guarantees on commercial. Bank deposits quarles acknowledges the innovation present in the stable sector while rejecting the notion that they are somehow competitive with central bank dollars. Stabile issuers do not create money stables fiat convertible ones at least are just a wrapper on commercial bank dollars. Quarles is one of the first central bankers. I've seen seriously acknowledge the enormous honeypot risks inherent in cdc and the fact that most likely cbc implementations would massively trade off against user privacy. He doesn't try to force stables into some ill-fitting regulatory mold instead acknowledging their utility while stressing that they can be rendered more credible. Although he doesn't elaborate much in how this would work quarles rejects the framing around the urgency of cdc. I am with him. Foreign countries with a reduced respect for property rights or liberty creating sino. Cdc's cannot and should not motivate us to create something similar at domestic. Cdc must stand on its own merits. One thing i find interesting is that these comments differ significantly from the tone of quarrels colleague. Brainard took a decidedly harsh tones on staples recently encouraging to.

cbc us federal reserve cdc quarles government Nick carter Stabile fdic Quarles Brainard
"federal  reserve" Discussed on CoinDesk Podcast Network

CoinDesk Podcast Network

02:05 min | 6 months ago

"federal reserve" Discussed on CoinDesk Podcast Network

"Vice chair of the federal reserve for supervision as well as the chair of the financial stability board at the one hundred and thirteenth annual utah bankers association convention in sun valley. Idaho gave a speech at the end of june called parachute pants and central bank money. His speeches at core a question about the logic and urgency of a central bank digital currency for the us. His starting point is that the dollar system is already highly digitized. So what he's really interested in is how is he. Bbc would add new benefits or would solve existing problems. He looks first. At the argument that quote the federal reserve should develop a cd to defend the us dollar against threats that would be posed by foreign cdc's on the one hand and the continued spread of private digital currencies on the other with regard to that first part foreign currencies. He says quote. I think it's inevitable that as the global economy and financial system continues to evolve some foreign currencies including some foreign. cdc's will used more and international transactions than they currently are it seems unlikely however that the dollar's status as a global reserve currency or the dollars role is the dominant currency and international. Financial transactions will be threatened by a foreign. Cdc the dollars role in the global economy rests on a number of foundations including the size and strength of the us economy. Extensive trade links between the united states and the rest of the world deep financial markets including for us treasury securities the stable value of the dollar over time the ease of converting us dollars into foreign currencies. The rule of law strong property rights in the united states and last but not least credible. Us monetary policy. None of these are likely to be threatened by a foreign currency and certainly not because that foreign currency is a cbc now with regard to private digital currencies quarrels divides them into stable coins and not stable coins. He is in his analysis. Pretty dismissive of bitcoin's potential to compete with the dollar. Basically saying that it's a novelty quote. Some commentators assert that the united states must develop a cdc to counter the appeal of crypto currencies. This seems mistaken. The mechanisms used to create such crypto acids value also ensure that this value will be highly volatile similar to the fluctuating value of gold which like bitcoin draws a significant part of.

federal reserve for supervisio utah bankers association united states cdc sun valley us treasury Idaho federal reserve Bbc Cdc cbc bitcoin
"federal  reserve" Discussed on Conspiracy Theories

Conspiracy Theories

03:02 min | 1 year ago

"federal reserve" Discussed on Conspiracy Theories

"That he received criticism for controlling prices and keeping inflation. Rather than jacking up prices to boost employment. Basically, he took money from companies and put it in consumers hands rather than enriching business owners to create jobs. Greenspan continued to push for low interest rates through the DOT com bubble, and the nine eleven attacks many Credit Greenspan for the longest economic expansion. The United States has ever seen, but after eighteen years, Greenspan left the job in two thousand five. And while the Fed was extremely successful up to that point, the two thousand eight recession brought new criticism author and Congressman Ron Paul published his book end the Fed to shed light on what he considered a dangerous and corrupt institution Paul claim that not only was the Federal Reserve and call. It was unconstitutional. Congress didn't actually have the right to establish A. A centralized bank or create paper money and the Federal Reserve was an institution designed to sidestep these measures through semantics Paul argued in the post meltdown world it is irresponsible, ineffective and ultimately useless to have a serious economic debate without considering and challenging the role of the Federal Reserve ultimately Paul's in the Fed Movement helped increase national skepticism toward the Federal Reserve. Because of its unique position, straddling the line between public and private, the Fed can keep its inner workings close to the chest, and this elusive nature has inspired many conspiracy theories like conspiracy theory number one the Federal Reserve didn't just sit idly by during the Great Depression, they actually caused it. So it's founders could enrich themselves at the public's expense. Conspiracy theory number to the Federal Reserve, ordered the assassination of President John F Kennedy in nineteen, sixty three after JFK signed an executive order handing over more power to the treasury. The Fed may have collaborated with the CIA to kill the thirty fifth president. And conspiracy theory number three the Federal Reserve is a cog in the new world order who may be using the Organization for global domination. The Federal Reserve is one the least understood organizations in our country. We don't know exactly what its goals are because it operates in the shadows. Songs Federal Regulation, they control the most dangerous weapon known to mankind. Our money. Thanks for tuning in to conspiracy theories. We'll be back. Wednesday.

Federal Reserve Greenspan Ron Paul Fed Movement United States President John F Kennedy Congress CIA Congressman treasury president executive
"federal  reserve" Discussed on Conspiracy Theories

Conspiracy Theories

03:01 min | 1 year ago

"federal reserve" Discussed on Conspiracy Theories

"Made the panic of nineteen o seven look like a cake walk in the nineteen thirties. The Nation hit its breaking point when the commercial banking system collapsed entirely. That's because only eight thousand commercial banks belong to the Federal Reserve System. There were still around sixteen thousand that did not and had no lender of last resort. While the banks inside the Federal Reserve System weren't hit nearly as hard much of America had their money in those sixteen thousand other banks on the outside. The Fed boards members differed on how to handle the crisis. Some believed aid should only be given to banks that were part of the system. Others argued that they should offer assistance to banks on the outside, or at least help their customers. The twelve branches were all involved in the final decision, but ultimately couldn't reach a consensus. Meanwhile, the Federal Reserve Board or the governing body of the Fed didn't have the power to dictate nationwide policy. Lawmakers. NHS became frustrated. It appeared that the Federal Reserve was sitting idly by while country descended into economic ruin. Ultimately Congress decided to resolve the issue themselves. They passed the banking act of nineteen, thirty, three, which expanded the president's authority during major banking crises and gave the Federal Reserve the flexibility to issue emergency funds later in nineteen, thirty, three Roosevelt decided to take the US off of the gold standard. He ordered all gold coins certificates worth over one hundred dollars to be turned into the Fed in exchange for paper money. Citizens would get twenty dollars in sixty seven cents per ounce of gold, which equates to a little over four hundred dollars today. The only exception was other foreign nations were allowed to exchange their US dollars with America for gold. The following year the government inflated that rate to thirty five dollars, an ounce, a little under seven hundred dollars today. This meant that the Federal Reserve who held the gold suddenly had sixty nine percent more money in their pocket. And more money meant more inflation. In the nineteen seventies, the Nixon administration completely severed any remaining connection between the US dollar and the gold standard, meaning the final clause of allowing other nations to exchange would now cease. Six decades after the Jekyll island meeting Fiat money finally became a reality. Things ebbed and flowed for the Fed until August eleventh nineteen, eighty seven, when economist and Greenspan became the chairman of the Federal Reserve two months later, he weathered another catastrophic economic crisis. The stock market crash of.

Federal Reserve System Federal Reserve Board chairman of the Federal Reserv US America Jekyll island Congress NHS Nixon Fiat Greenspan Roosevelt president
"federal  reserve" Discussed on Conspiracy Theories

Conspiracy Theories

02:43 min | 1 year ago

"federal reserve" Discussed on Conspiracy Theories

"Ten, a group of wealthy bankers mad on Jekyll island to discuss their plans for a centralized bank. Three years later, that plan became a reality when the Federal Reserve Act was passed and signed by President, Woodrow Wilson, but Com August of nineteen fourteen. The United States economic climate completely changed World War. One began, and although America hadn't joined the fight yet. Economic Panic was still setting in. As for the Fed, they had only been founded nine months before, and it wasn't quite operational yet. They're twelve branches wouldn't open until November nineteen, fourteen and rushing wasn't an option. They were in new unchartered territory, especially, because the start of the war triggered another run on the banks, but the panic only lasted for a few months. By the end of the year, a large influx of European gold came into the United States to pay for exports. The, federal. Reserve gathered that gold and stored it in their own private vaults. As a result, the nation's reserves inflated drastically. The Federal Reserve didn't quite know how to address that in addition European. Financial markets had slowed installed, and since the United States was in good financial standing, many foreign entities came to America to ask for loans and other financial needs. This strengthened the US dollar and made it one of the world's leading currencies when the United States finally entered the war in nineteen seventeen. The government needed extra money for the troops. The Federal Reserve did their part by keeping interest rates low so the government. Government could borrow at a lower cost. They also sold liberty bonds to citizens to raise money for the war effort. The United States came out on the other side of World War One with one of the world's most prosperous economies when the other nations started to pay back their wartime. Dad's the federal. Reserve amassed more gold than ever before the Fed had the luxury of offering citizens low interest loans while inflation soared the Federal Reserve had passed the ultimate test. It had proven itself as a necessary resource that could properly function as a centralized bank after the war. It did its best to bring down inflation. But? It was too late in the late nineteen twenty s, the nation went into an economic recession. In Nineteen, twenty nine, the United States had one of the most catastrophic economic disasters in global history. The Great.

Federal Reserve United States America Jekyll island Woodrow Wilson President
"federal  reserve" Discussed on Conspiracy Theories

Conspiracy Theories

03:57 min | 1 year ago

"federal reserve" Discussed on Conspiracy Theories

"Now is the time to institute elastic Fiat money to keep up with the nation's capital economy in other words, the men at Jekyll island where to convince the government that they should create money out of nothing, and then lend it back to its citizens. Incidentally, the plan gave these men full control over the majority of banks in the United States. All they had to do was convinced Congress that this plan wasn't self-serving. It would protect the nation. And before they could get the government on board. They'd have to convince the American people that this was in their best interest as well. The jekyll island team got to work. As soon as they left their ninety retreat, they hired university professors to academically approve the plan. They were about to bring to Congress. To sweeten the deal, the banks donated five million dollars around one hundred and thirty five million today to universities like Princeton and Harvard out of these educational funds came to national. Citizens League, whose motto was a movement for a sound banking system. The organization distributed thousands of educational pamphlets an organized letter writing campaigns to local congressman, this folk grassroots movement quickly gained traction with American citizens, but one powerful congressman was prepared to Stonewall the agenda. William Jennings Bryan was one of the most popular congressional Democrats serving in Woodrow Wilson's cabinet as Secretary of state, he was well-spoken and a champion of liberal causes like prohibition, raising income tax on the wealthy supporting women's suffrage in creating the Department of Labor Ryan's powerful influence over Congress made one thing very clear. The JEKYLL island plan wouldn't pass without his consent, and he certainly wasn't about to support a bill that allowed private banks to issue their own money. So when the proposed federal, Reserve Act reached his desk in nineteen thirteen. Brian refused to accept it as written instead, he opened negotiations with the bankers. Brian insisted that cash had to be printed by the Treasury. The Federal Reserve shouldn't have the power to do this on their own. And the governing body of the Federal Reserve needed to be appointed by the president and approved by the Senate. That way the public was protected by a system of checks and balances. This would be a risky experiment for the United. States government who'd seen banks like this fail in the past. But the difference was that now the state and the banks would publicly combine their expertise and share their power which hadn't been done before. In late nineteen thirteen, both parties reached an agreement and with Brian's approval. It was far easier to convince the House and the Senate to ratify the Federal Reserve Act just three days before Christmas the house quickly passed the final bill with a vote of two hundred, Ninety, eight to sixty, the Senate passed forty three to twenty five, and it was signed into law by President Woodrow Wilson the very next day on December twenty, third nineteen thirteen. The federal. Reserve was in business. Coming up the Federal Reserve pulls the strings of the American economy and now back to the story. In nineteen.

Federal Reserve Jekyll island Congress President Woodrow Wilson Brian Senate United States congressman Citizens League William Jennings Bryan Treasury Princeton Harvard president Department of Labor Ryan
"federal  reserve" Discussed on Conspiracy Theories

Conspiracy Theories

07:15 min | 1 year ago

"federal reserve" Discussed on Conspiracy Theories

"Today the federal! Reserve, controls the United States interest rates and the amount of money in circulation. But. It's not an age old institution. The US government's first three attempts at a centralized banking system failed. So. In the early eighteen hundreds thing lifted up to the states and privately owned institutions to manage America's money, but the system proved too weak in the face of a crisis. In April nineteen o six, a seven point, nine magnitude earthquake hit San Francisco causing massive devastation, not just to the city, but to the entire US economy, bridges, roads and buildings were destroyed insurance companies went bankrupt in an effort to fulfill their claims, but many property owners didn't have insurance and couldn't afford to rebuild or move. The stock market plummeted as investors. Investors were forced to sell shares in an effort to repay their debts. People started to worry about the banking system stability and decided they'd rather hold onto their cash than let the banks do it for them. The country entered a recession as more people refuse to spend their money in October. Nineteen O seven, a Wall Street panic made the recession even worse. Auto and Augusta's hinds copper moguls tried to corner the market by taking full control of their company's stock. The brothers bought as many united copper shares as they could, and drove the prices up except auto completely misread the market projections two days after he purchased the stock, his very expensive shares plummeted even lower than the original rates. The Wall Street Journal reported on the drop, which triggered a nationwide panic. Clients made a run on the banks meaning they withdrew their money from every institution rumored to be involved with the Heinz family, many state and local banks declared bankruptcy leaving thousands of their customers unable to access their funds. It quickly became apparent that the independent bank didn't have the infrastructure to whether an economic crisis. Luckily. One American banker was ready to rally the troops and clean up the mess in October, nineteen o seven John Pierpoint, Morgan better known today as J. P. Morgan invited a group of bankers over to his New York Mansion. He asked that they fled their capital into the banking system to keep the economy afloat until the panic subsided. Essentially J. P. Morgan's private banks save the US government a lot of money by bailing out the banks, so they didn't have to. But Morgan and his friends would soon call in the favor. G. P. Morgan didn't board. Aldridge's train car that November and nineteen ten, but he was well represented the roster of Cigar Smoking. Men included Benjamin strong head of JP Morgan Bankers Trust Company and Henry. P Davison senior partner at j.p Morgan Sipping Scotch alongside him where a Piat Andrew Economist, and Assistant Secretary of the Treasury. Paul Warburg partner at a New York investment firm called Kuhn, Loeb, and company Frank, a vendor lip president of the National City Bank representing William Rebecca Feller. Of. Course Nelson Aldrich Senate chairman of the National Monetary Commission A study group responsible for reporting any changes to the American currency or banking system to Congress, but Aldrich knew that the commission was mostly just for show. The country needed a stronger monetary agency to avoid future panics, which was why he'd brought these men together. They traveled eight hundred miles south to Jekyll island there they'd spend nine days at a private resort exclusive to the nation's wealthiest as soon as Aldridge's extravagant train car pulled into the Brunswick station in Georgia news of their arrival spread, the men were waiting for their boat at the local dock when reporters arrived spitting questions. Henry Davison told the journalist that he was simply. Simply entertaining a few guests, they'd come for a week long. Duck Hunt and the press Bhatt it soon. The reporters dispersed in Aldrich and his friends had privacy again from that point on their meeting was shrouded in secrecy for the duration of their stay at the island lodge. The men only referred to each other by their first names. They dismissed there fulltime staff in favor of new employees. Who didn't know their identities, so no, this wasn't an ordinary duck hunting trip. It was an effort to establish the most powerful banking structure. The world had ever seen. The men spent their days drinking expensive Scotch, eating caviar and devising a plan to tackle some of the issues they collectively faced. They'd been business rivals before, but now they needed to combine their powers and take back control I. They had to stop the growing influence of smaller rival banks. Even these wealthy elites felt the competition getting stiff in the banking world. After the market crash there were almost twenty thousand privately owned lending institutions across the nation. They cut into the big banks market share, and made it harder to make money off of interest or loans. Another problem was that American banks didn't have a lender of last resort. meaning. There was no to fall back on. Although it had failed before the United States really needed a central bank one that could create as much money as needed to help banks that were risk of going under and to accomplish that they needed to make money more elastic, which meant that its value could be inflated or deflated quickly. According to commercial demand, they also needed to pull the nation's funds into a large centralized reserve. Then they could be the ones to dictate who got? Got How much most of the men involved in the Jekyll island meeting were experienced bankers, and they all knew the rules of the game investor Paul Warburg had already advocated for a centralized bank for years he published several pamphlets that were popular in financial and academic circles, so he became the JEKYLL. Island plans mastermind Warburg had long argued that American currency had been handicapped by its dependence on government bonds and gold. He believed that one day the world would come off this system. Now is the time to institute elastic Fiat money to keep up with the nation's capital economy in other words, the men at Jekyll island.

US J. P. Morgan Jekyll island Paul Warburg Nelson Aldrich Aldridge JP Morgan Bankers Trust Compan Henry Davison San Francisco JEKYLL America P Davison National City Bank Island Augusta
"federal  reserve" Discussed on Conspiracy Theories

Conspiracy Theories

03:43 min | 1 year ago

"federal reserve" Discussed on Conspiracy Theories

"Safely store public funds and take over the government's financial duties like back war debts. And since it would all be done outside of the federal government, it wasn't technically unconstitutional. His model wasn't too far off from the Bank of North America's in fact Hamilton was a former colleague of Robert Morris and some believe that he was working to keep Morris's agenda alive. Theoretically, the further the banks stayed from political control in the less, the public understood about their inner workings. The easier they'd be to profit from. Except Thomas Jefferson saw right through Hamilton's plan. He argued that because Congress couldn't print money. They also shouldn't create their own bank. The heated debate lasted months. The issue played a part in creating the country's first political parties. Hamilton led the federalists who advocated for a strong centralized government and commercial growth. Jefferson became the face of the Anti. federalists who supported states, rights and believe the constitution should limit the federal government's power. Ultimately Hamilton's party went out in Congress issued a twenty year charter to the First Bank of the United States Hamilton handpicked. The bank's new President Thomas Willing a merchant who had benefited from Morrison's corrupt dealings during the revolutionary. War The first bank acted as the nation's fiscal agent, securing incoming loans in paying its bills. The US government became the largest shareholder in the biggest corporation in America and while it didn't manage the bank. Bank directly it collected a portion of its profits inspected the books from time to time of course, the government flourished when the first bank did well, so they didn't have much incentive to blow the whistle. If they ever found something amiss, unlike the Federal Reserve, the first bank offered loans to private citizens and businesses. It printed its own banknotes backed by gold reserves with those notes in circulation. The US dollar became more powerful. In eighteen eleven, the charter went up for renewal but Alexander Hamilton wasn't alive to defend the banks honor anymore. The pro-bank federalists no longer had congressional power at the end of January. The House voted on whether or not renew the charter. It came down to a tie-breaking vote and the First Bank of the United. States lost. It was subsequently dissolved. Another attempt was made with the Second Bank of the United. States in eighteen sixteen, but it didn't have the support of the newly elected President Andrew, Jackson so the second bank met the same fate as its predecessor, and was also dissolved for the next seventy five years. The United States thrived with only private or state owned banks. That is until nineteen o seven when the new. York Stock Exchange fell almost fifty percent and panic spread throughout the nation. Millions of dollars had disappeared overnight. Coming up the panic of nineteen o seven triggers a top secret meeting of the world's wealthiest men. Knives out the critically acclaimed blockbuster film that audiences love is now free to prime members on prime video. When renowned crime novelist Harlan thrown be dies on the.

First Bank Alexander Hamilton United States federal government Thomas Jefferson Congress Robert Morris Federal Reserve North America President Andrew, Jackson York Stock Exchange Harlan President America Morrison
"federal  reserve" Discussed on Business Basics

Business Basics

09:12 min | 1 year ago

"federal reserve" Discussed on Business Basics

"We're left with a lot of new deal proposals like the glass steagle act and some other new reforms that end up giving the Federal Reserve's responsibilities over to the treasury and what this process does is it allows the Fed to become more focused on certain duties. It'll it'll also Laos the Fed to become more centralized so in effect. It's making the Federal Reserve a more efficient system that we can effectively implement. Us economic policy. So what is the Federal Reserve today? So basically the Federal Reserve is what is known as a bank while simultaneously being the government. Spink IT sells notes and bonds which are basically where consumer gives money to the government and the government uses that money and after a certain period of time depending on the bond length or the note went then the federal government gives that money back to the person who purchased it with interest and each bond rate has an interest rate attached to it which allows the consumer to make money from it in addition to that the Federal Reserve is also responsible for distributing cash apply from the Treasury to the Banks. So that means that it's a whole nother organization within the federal government. That's separate from the Treasury. It's working in tandem with the Treasury to distribute money. But it's not the one producing money dot is the treasury's job. The Fed the Federal Reserve has twelve banks. It has banks in Boston. New York City Philadelphia Cleveland Richmond Chicago. Atlanta Saint Louis. Minneapolis Dallas San Francisco in Kansas City. So these twelve banks all have a president or CEO. Who's responsible for managing that bank and each of these banks are responsible for distributing money to their respective regions and lending major commercial banks money. In addition to those twelve banks the Federal Reserve also has a seven member committee known as the Board of Governors and this board of governors is the one who sets interest rates and they are the ones who help in making public policy them in tandem with the Federal Open Market Committee and another system. We'll talk about so the Board of Governors seven member committee appointed by the President and approved by the Senate and then you have on the seven member committee. A chairman and vice chairman were appointed to buy the precedent and they serve four year terms without any term limits. Sonali mentioned the Federal Open Market Committee. What exactly is that? The Federal Open Market Committee is the Board of Governors plus the president of the New York City Bank and three other of those eleven other Bank Federal Reserve Bank chairs that end up rotating in a yearly fashion. This Federal Open Market Committee meets eight times a year and they're the ones who set federal the Federal Reserve policy they set interest rate guidelines within the interbank market. So what does that mean? Basically banks trade money amongst themselves before they traded to consumers and whenever they traded amongst themselves they have an interest rate that they abide by. And because you have competing banks trading money. You're not going to have one. Banks set an interest rate. What you're going to have is the banks abiding. By the interest rate guidelines set by the Federal Reserve so those banks will trade money amongst themselves by the poll by the range set by the Federal Reserve. And then in turn those banks will for the most part set their own interest rates that they charge consumers or people who they give money to that they loan money to they'll charge them interest rates that are around the same area as the Federal Reserve interest rate guidelines. So that's one aspect of the Federal Reserve in addition to that it can. It's also responsible for introducing money into economy so the Federal Reserve helps to sell bonds. I E drawing money into the Federal Government but in economic downturns the Federal Reserve also buys bonds so therefore advise that bond back it gives money to the consumer whenever the consumer economy have less money than usual and that way the Federal Reserve is giving its money to the consumer and that we'd economy has more money within so if we think back to more recent event than the Great Depression immediately what comes to mind is the two thousand eight recession and we think about that. Did the Federal Reserve have a major impact on alleviating the two thousand eight recession? And so the answer to that. Is that during this time? The Federal Reserve cut interest rates and it did purchase the debts of some struggling corporations. But the problem the would that happen with the Federal Reserve during this time is that the Fed began cutting interest rates in two thousand seven. They thought the economy slowing down. So therefore they decided to cut those interest rates but in two thousand eight was when the problem really hit that was when the economy entered recession territory. And so by the time we were in mid two thousand eight inflation had already started increasing because of those interest rate cuts from two thousand seven that the Federal Reserve's hands were tied behind. Its back to cut interest rates further so the Federal Reserve couldn't do anything with the interest rate aspects beyond two thousand eight. But what they did do was they injected four trillion dollars to the US economy through the purchasing of bonds. Like I mentioned before so. The Federal Reserve played a notable impact in the two thousand and eight recession. All beat not as much as it probably would have liked to given that the interest rate cuts from two thousand seven did significantly hamper. It's ability to affect change in two thousand eight and now we that leads us back to where we are today where we have the krona virus or cove in nineteen and as we've all seen within the last month the massive economic downturn that has occurred and so we've been hearing within the news that the Federal Reserve is thinking of or rather not thinking but it's already taking action and so this action that the Federal Reserve has taken have has already been that they've cut interest rates to zero so the official Federal Reserve Interest Rate Range is zero percent zero point twenty five percent. That's already been done. It happened two weeks ago so Federal Reserve is already on top of that but the problem is and we don't want to run into a similar problem faced with interest rates in two dozen eight so the Federal Reserve is planning to to inject economy money into the economy. Even faster this time than it did in two thousand eight and what you have right now with the current viruses. No one is really willing to lend money what you're seeing. The stock market is that people are dramatically selling their positions in order to get cash back and no one wants to lend money to the corporations. No one's going. Outside of their homes people are told to stay indoors so with no one lending money then that means someone has to and so. The Federal Reserve has announced that it will purchase treasury in corporate bonds in order to lend money and this is pretty significant because a the federal reserve has never delved into corporate bonds before Sadat is pretty. That's a pretty significant action. Additionally I've read that the Federal Reserve is even announcing that it will purchase around seventy five to fifty billion dollars worth of bonds each day if we calculate that over the next two weeks to four weeks. Then we're going to massively out. Then we're going to have a lot more money than four trillion dollars which is how much the Federal Reserve put in in two thousand eight recession. So that's where we are today in terms of the Krona virus and the Federal Reserve's Halsey and it stands on alleviating the economic impact..

Federal Reserve Bank Federal Reserve Bank Federal Open Market Committee federal government treasury US Laos New York Boston Spink Board of Governors Chicago Minneapolis Sonali president Atlanta chairman
"federal  reserve" Discussed on Business Basics

Business Basics

10:06 min | 1 year ago

"federal reserve" Discussed on Business Basics

"So our Federal Reserve story starts back in the early nineteen hundreds an actually even before. Then see up to this to the early nineteen hundreds we had had a series of major financial panics within the US third major notable ones where the panic of eighteen seventy three following the construction boom. That happened after the civil war. Panic of eighteen ninety three right in the heart of the gilded age and the panic of nineteen o seven and the panic of one. Thousand nine hundred. Seven is the one we're going to focus on but before we do that we look at all three of those major financial events in the intermediate sprinkled in between what was the common denominator between all of them. They all involve banking failures that resulted in prolonged periods of economic depression. And these banking failures were caused by rampant speculation banks made loans to these speculators and ultimately you'd have these speculators creating these economic bubbles and then every these bubbles collapse. These prices became unstable then. The entire market crashed when the bubbles collapsed. So if you go to the nineteen thousand seven panic what happened. In one thousand zero seven so the fallout from the crash of the United Copper Company stock led to the chain reaction of bank runs and you had stock owner trying to make money off of shorting a stock and he miserably failed. He got put into lots of trouble. His reputation got got ruined in his name. Was Mr Auto hines. And so he was a very well connected man him and his brother and they were precedents of several banks around the country especially with New York and so a lot of people they start hearing that Mr Hines and his family are at the head of my bank and if they're going to do this to their company then I might as well take my money out of my bank so all around the country and starting in New York. You start seeing these. Massive Bank runs where people are going to banks and the crowd in line just gets longer day by day hour by hour and you have people standing outside of banks just asking for their money back and banks. How having loaned this money out. Don't have the money to give them so. Banks have little to no liquidity and at the same time they have people asking them for loans so banks are refusing to give out these short term loans and they have dramatically raised interest rates to the people who they do give loans to and these interest rates reached even as high seventy percent which is extremely high to be paying on an inch on bank. So because of this you had people afraid to basically lend money lend money to corporations within stocks or put money into stocks and lend money to those corporations on stock exchanges so within the stock market as well you have low volume so even the stock market the stock exchanges were in danger of shutting down because of the low volume of trade so all these bankers and stock exchange managers within New York City. They all go to the most famous financier in American history at that time and still is to this day probably the most famous financier and his name. One you've probably heard of this J. P. Morgan so. Jp Morgan uses his own money. He's a billionaire and he uses the he gets other billionaires like John D. Rockefeller to pitch in. And what they do. Is they get they say okay? Banks will give you our money. You can use our money to give to people who are asking for their money back and JP Morgan and people like John. D. Rockefeller were extremely well connected. And so what they do. Is They get even the Treasury Department to pitch in a little money as well to these banks and they convince bank managers. You guys are being a little harsh. Come on just give just lower your interest rates. Give reasonable loans to people. So they can trade stocks and the actions of J. P. Morgan here were Sherman had a tremendous impact. Gp Morgan's actions prevented the crisis from becoming even worse than it did. As bad as the crisis was it could have been a lot worse had JP. Morgan not stepped in and rallied his friends in government and as well as wealthy friends to chip in and convinced these bank managers to calm down and alleviate some of the concern caused by the panic so in the aftermath though even though J. P. Morgan had basically saved the problem for becoming a lot worse. There is concerned though about the reliance of private unreal of the government relying on private individuals to have to rescue the entire economy. And the worry was that he S. JP Morgan rescues the economy. But he's also having almost the entire control of the US economy he's controlling almost the entire US economy. The major banks especially in the northeast. Which at the time was a sent. The population hub of the United States and in addition to that. Jp Morgan has a financial immature. And he's growing old he's GonNa pass away within six years and to him. It's like I can't afford to save the economy each time. There's speculation and there's incompetence within the banking industry so he's also desperate for a measure to alleviate this problem in the future so and keep in mind to part of the reason why. Jp Morgan had to step in. And why was the wealthy? Gweat to step been primarily rather than the government was that the US had no central banking system. See back in eighteen. Thirty seven. The President of the United States Andrew Jackson let the Charter for the Second Bank of the United States. The National Bank expire and since eighteen. Thirty seven the. Us has had no central bank no central banking system at all so what GP Morgan and his wealthy friends as well as government officials who are anxious to change this policy. They start working on a proposal Creative Federal Banking System essentially to replace the Central Bank that was abolished in eighteen thirty seven so after howling over various proposals. Jp Morgan ends up passing in nineteen thirteen and it's ultimately in December nineteen thirteen that the Federal Reserve Act is passed and signed is passed by Congress and signed by President Woodrow Wilson and so the initial system that they set up of the Federal Reserve also known as the Fed was pretty insufficient. It was decentralized. So you have the Fed chugging along and then here in the late nineteen twenties fresh off the roaring twenty s when you have the rise of consumerism and a lot more people adopting credit for the Fed decides to raise interest rates in nineteen twenty eight and then in the early nineteen thirties. When after the a? After block Tuesday when the stock market crashed the end these banks are experiencing bank runs. The Fed is making the decision to not give money to these banks which kind of defeats the purpose of why the Fed was set up right if we go back to nineteen o seven. It was ultimately J. P. Morgan and his friends who ended up giving money to banks so they could give to people and they said okay enough of that will have the government do that so they set up the Federal Reserve but then here in the Great Depression the Federal Reserve is refusing to give money to the banks and the reason behind. This was at the time. It was still very polarizing to have the government. Step in and give this much money to private street and overtime. That view has significantly evolved but at the time it was very controversial for the federal government to give money like this and so then the decision was made to not give money to fix and this ultimately does end up prolonging the depression a as long as it did it was only ended by the US entry into World War Two in nineteen forty one and throughout the Great Depression. You have high deflation sue the opposite of inflation where you don't have enough money circulating through the economy and all of this hearkens back to the Federal Reserve's decision to raise interest rates in one thousand nine hundred eighty eight where you had people with less disposable income and so they were less willing to spend on things like entertainment and travel so you had less money going throughout the economy and by the time the Fed realized that they had made a mistake in nineteen twenty eight by raising interest rates. They decide to introduce money. Not but not giving it to banks but by insinuating at through various proposals and they try this in early nineteen thirty one and they do end up releasing some money but the problem is it's too little too late they should have done it much earlier and ultimately.

J. P. Morgan Federal Reserve United States John D. Rockefeller Massive Bank GP Morgan Mr Auto hines United Copper Company National Bank New York Mr Hines
"federal  reserve" Discussed on KTOK

KTOK

03:34 min | 2 years ago

"federal reserve" Discussed on KTOK

"The federal reserve signaled it won't raise interest rates for the time being a potential boon for first time home buyers one reason the low rate environment increases consumers' purchasing power Jessica Menton personal finance and markets reporter at USA today has an in depth look at today's market just what's it like working like a potential boon for first time home buyers and those that are looking to refinance a and the big reason is because the lower rate environment right now the fed has signaled that it won't be raising rates for next year increases consumers' purchasing power so basically many prospective home buyers could afford a more expensive home than they previously thought nights are they doing that or will they do that actually it's interesting because I pulled some data and it looks like about six point eight million borrowers could potentially benefit from refinancing and that's from a data from black night which is a mortgage data analytics company so there's a group of Americans who if he didn't walk in lower rate in the aftermath of the financial crisis when borrowing costs for even lower they're still a group of people out there that could benefit from refinancing and when you look at the home buying side a lot of that first time home buyers or millennials who typically been straddled with safe student died and a book of then or injuring their leaves next year so it's more of them get married and have children economists are thinking that's really going to help that side of the housing market yeah so that that group then are they going to lift the housing market is that a is that a big enough group like reaching their thirties there is an issue when it comes to supply and demand and so there's a lot of demand on the first time home buying side driven by millennials but the problem with the quiet a lot of existing holders you don't want to move because they have walked in lower rates after the financial crisis and so there's not a new homes available for a lot of first time home buyers to go into so that's the dynamic that have been pushing home prices higher and those builders are not making those types of homes really right I mean they're not it's a starter homes that much now and that's really where it widened the issue right there so when you have the boomers that might not be wanting to to move then that's causing that issue when you see rising housing prices so it really depends also on the market that you're in typically the Sun Belt has the more attractive holding prices and see if you're on the east to the west coast speak with Jessica meant in personal finance and markets reporter at USA today she's written a piece about whether or not now is a good time to buy a house since the federal reserve has held interest rates steady what about the the coming months are looking deeper into twenty twenty any feel for that yeah so the economist that I've spoken with said twenty twenty looks like a great time to buy if you are have been on the sidelines and you've been thinking about it just because the fed had their meeting this week in a signal that they won't be raising rates in twenty twenty and that was something that was a pretty beat people really well on the sidelines wondering okay we'll we'll Dave lower rate the the more will be a free trade in so since it looks like we're going to be in this sort of middle band there a we've seen because of the steps that that is taken that would really help you mortgage rates over the past six months and so if you're looking to do it and you're looking to buy it buy a house or even a refinance you should look into doing that in twenty twenty let's just just comment in personal finance and markets reporter at USA today fourteen minutes from the hour on this morning America's first news on new.

federal reserve Jessica Menton