Most people don't realize there's a checks and balances in the "fed" between the Board of Governors and non board members of the FOMC. Their appointed terms are intentionally 14 yrs to avoid political volatility. So they may be powerful for a spell but not above government.

But yes when the FOMC buys securities => inflation.

However, that's the "price" of economic stability in equations I doubt you nor the OP have ever had exams on in college.

This post was edited on 3/26/20 at 10:20 pm

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Posted by EarlyCuyler3

Appalachia

Member since Nov 2017

27290 posts

Posted on 3/26/20 at 10:23 pm to mikelbr

quote:
However, that's the "price" of economic stability in equations I doubt you nor the OP have ever had exams on in college.

The problem with that theory is that the "stability" is a crock. It does provide some general overall stability, however it only benefits those at the top of the chain. For everyone else it's a net negative, since they now have less money than they did before the Fed decided to print more money.

Having a college degree is nice. I'm sure you know far more details than I do. That doesn't mean I can't comprehend the big picture and realize what the result of this is going to ben. You just admitted that inflation the result. So it looks like I dont need a degree in finance.

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Posted by nated14

Baton Rouge

Member since Nov 2009

880 posts

Posted on 3/26/20 at 10:25 pm to mikelbr

The fed still has the power to dictate monetary policy to a limit and they push the limits when they can. Not right or wrong but very influential without the rigors you referenced.

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