Federal Reserve Board’s Post

#federalreserve #unitedstates The Federal Reserve Board website has many educational resources about how the institution works. An excerpt from the paragraph on monetary policy objectives is https://lnkd.in/g6Xr9MCs: The Federal Reserve Act mandates that the Federal Reserve conduct monetary policy "so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates." Though the two primary objectives of maximum employment and stable prices is commonly known as the dual mandate despite the third and equally important objective of moderate long-term Interest rates, it is this third objective, Fed Chair Powell fails to mention, which is paramount at the moment for the United States given the rising budget deficits from the wars since 9/11 that can determine the future of the U.S. dollar in the international monetary system https://lnkd.in/eEhY8M5G.

#federalreserve #unitedstates The Congress, which established the Fed in 1913, would be remiss in its oversight responsibility of the institution and self-serving if it does not ask both the Fed and the Treasury The White House about how the ongoing war spending could affect the work of the Fed in meeting its mandate. Even if the Congress does not ask, Chair Powell must ask his overseers what are they doing about the rising government debt for him to be able to do his job effectively rather than pressure him to introduce ‘government moral hazard’ as monetary policy similar to how ‘market moral hazard’ was introduced as monetary policy since 1987, becoming worse in the lead up to the globally devastating housing crisis and the Great Recession in 2007-09 producing financial market failure. We must remember that the Fed experienced enormous pressure from the Democrats beginning with the Clinton administration even though it publicly warned the U.S. Congress in testimonies under Alan Greenspan about housing and Government Sponsored Enterprises (GSEs) producing the housing crisis and from Donald Trump to be lax in its bank regulatory responsibility under Powell producing the recent Silicon Valley banking crises. This bi-partisan pressure through the Congress and White House on the Fed to keep financing the wealthy and government expenditures, despite the central bank’s statutory independence, especially since the Supreme Court’s fateful Citizen United decision in 2010 despite the Great Recession interpreting money as free speech contaminating American politics and governance, running counter to the interests of the American people and the nation’s general welfare in the preamble of the Constitution, will only rise further if Trump is elected and his Project 2025 out of the Heritage Foundation is implemented. If the Fed is meek with the rest of Washington and succumbs to pressure to print money irresponsibly for the wars, government moral hazard as monetary policy could lead to massive government failure with consequences far worse than the housing crisis for the American people though not for the very few world’s wealthy. America’s businesses must relearn how to run their businesses properly and its government how to run the government. Otherwise, this unholy alliance between the markets and the government Bill Clinton began without a check and balance is soon going to render America, India, Africa, and Russia, third world countries.

Does this mean the existence of the Federal Reserve Board implies the Free Market is incapable of providing maximum employment and stable prices?or does it mean the Federal Reserve along with other regulatory bodies are the perpetual incubators of the Free Market which provides Maximum Employment and Price Stability? The only conclusion I can come up with is this: Free Market does not mean a market free from regulations or a market with minimal registration. Free Market means under the rule of law every competitor of any production of goods or delivery of services or both has an equal and fair opportunity to participate in competition with each other for attracting the demand of the consumer for their respective goods or services through innovation, efficiency, transparency, accountability in the manufacturing of goods or/and delivery of services, and consumers are empowered to communicate effectively without misinformation or undue influence their demand and exercise their choice regarding their right to purchase goods or access services. When the federal reserve is exercising its monetary policy for maximum employment and price stability it has to keep in mind the above parameters of rule of law in the relationship between competitors, the relationship between consumers and the relationship between competitors and consumers. The federal reserve and other central banks have a bad track record so far. They do not have the tools to counter the psychological warefa of advertisement companies which have been further amplified by the network effect of social media platforms through which advertisements are perpetuated in the contemporary age. Reserve Bank and other Central Banks have been anachronistic in this regard.Some solutions have to be found. But what? Does anyone have the answer?

Join Kroll experts Carla Nunes and James Harrington for an insightful session on "Economic Uncertainty and Election Headwinds: Cost of Capital Ramifications" at the 2024 ASA International Conference on September 17. Learn how economic and financial market developments can impact how you perform #valuations in the future. Secure your spot now: http://ms.spr.ly/6044mPKDg

Join Kroll experts Carla Nunes and James Harrington for an insightful session on "Economic Uncertainty and Election Headwinds: Cost of Capital Ramifications" at the 2024 ASA International Conference on September 17. Learn how economic and financial market developments can impact how you perform #valuations in the future. Secure your spot now: http://ms.spr.ly/6042mPlHE

Discover insights on the upcoming UK general election and its potential effects on the property and financial markets. Read our latest blog post for detailed analysis and expert opinions: https://lnkd.in/ecact4fw #UKElection2024 #PropertyMarket #FinancialMarkets #UKEconomy #InterestRates #MortgageAdvice #GBP #Inflation

Discover insights on the upcoming UK general election and its potential effects on the property and financial markets. Read our latest blog post for detailed analysis and expert opinions: https://lnkd.in/em6BSgGR #UKElection2024 #PropertyMarket #FinancialMarkets #UKEconomy #InterestRates #MortgageAdvice #GBP #Inflation

The 2024 election is just months away and will have significant investor implications to tax and trade policy, debts/deficits and navigating geopolitical unrest. This general election series consists of monthly reports examining the relationship between financial markets, the economy and electoral outcomes. Please note this series will be published in addition to our flagship US Policy Pulse reports. https://lnkd.in/ek_qzNjA

Last week the Monetary Policy Committee agreed to lower the Official Cash Rate by 25 basis points to 5.25%. Watch the video below for the top takeaways from our August Monetary Policy Statement or read the statement here: https://bit.ly/3ytRNyy

How will the U.S. presidential election shape the future of the financials sector? T. Rowe Price explores the potential shifts in regulatory policy depending on the outcome, with a focus on the implications for banks, insurers, and asset managers. As election dynamics continue to unfold, now is the time to understand the potential impact on your investment strategy. Read the full analysis. https://lnkd.in/gir5KfDf #InsuranceAUM #FinancialRegulation #FinancialsSector #USElections2024