Stanley Fischer (The Federal Reserve's Vice Pro)

Every year Time Magazine comes out with a special edition titled “The Worlds Most influential People” Everyone from Presidents, Kings, Celebrities, and Authors make this annual list. The names are some that everyone recognizes: --------------------------- however, a name that frequently appears is one many people may not recognize, Jannet Yellen. Jannet Yellen is Chairwoman of the Federal Reserve, and arguably the most influential person in the world. The Federal Reserve is the bank of the United States. The Federal Reserve’s decisions, approved by Jannet Yellen, impact the entire US Economy, the largest and most important economy in the world, almost instantly.

There are many thoughts about the Federal Reserve, some people think it is the biggest thief ever and some other people think that the Illuminati is running the show. Also some people know that the Federal Reserve has saved the economy of the United States a couple of times from depressions. Moreover, economists think that the Federal Reserve saved the U.S. from the most recent depression in 2008. Many people in the U.S. may not know who Alexander Hamilton is; however, any economist or anybody who is studying economy should know who he was. Alexander Hamilton played a big role in the economy of the United States in 1791, when he started promoting a movement to embrace a central bank. In that same year the first bank of the United States

Many Americans are unaware of where their money comes from and who truly owns the money because it sure does not pertain to the American people. What does this mean? Well, every dollar that has ever been printed in Americas history is money that is owed to Americas Central Bank known as the Federal Reserve. Not only does the Federal Reserve have control over the average American citizen but also over; America 's upper management reigning from The house of Representatives, The Senate, all the way up to the President of The United States. That being said, the Federal Reserve is an overall negative economic influence and the veil they have been working behind for decades must be brought down.

Life: Where do we come from? How did we get here? These are questions each one of us eventually asks ourselves and, in so doing, searches for the answers. It is intrinsically woven into us to know the basis of what sustains us. Why is it then, that the general public is satisfied in knowing only about current celebrity gossip and is content to remain ignorant when it comes to where our currency originates and how it is produced? Some may find it too confusing and overwhelming a subject about which to think. Is it possible that its perplexity is not by mistake? James Corbett mentions in his documentary, Century of Enslavement: The History of The Federal Reserve, “Our monetary ignorance is artificial, a smokescreen that has been erected on purpose and perpetuated with the help of complicated systems and insufferable economic jargon.” (Corbett, J., 2014, July 6.https://www.youtube.com/watch?v=5IJeemTQ7Vk)

Our economy is a machine that is ran by humans. A machine can only be as good as the person who makes it. This makes our economy susceptible to human error. A couple years ago the United States faced one of the greatest financial crisis since the Great Depression, which was the Great Recession. The Great Recession was a severe economic downturn that occurred in 2008 following the burst of the housing market. The government tried passing bills to see if anything would help it from becoming another Great Depression. Trying to aid the government was the Federal Reserve. The Federal Reserve went through a couple strategies in order to help the economy recover. The Federal Reserve provided three major strategies to start moving the economy in a better direction. The first strategy was primarily focused on the central bank’s role of the lender of last resort. The second strategy was meant to provide provision of liquidity directly to borrowers and investors in key credit markets. The last strategy was for the Federal Reserve to expand its open market operations to support the credit markets still working, as well as trying to push long term interest rates down. Since time has passed on since the Great Recession it has been a long road. In this essay we will take a time to reflect on these strategies to see how they helped.

During the Federal Reserve meeting in April 2016, the range was left unchanged for federal funds at 0.25 percent to 0.5 percent (TRADING ECONOMICS, 2016). Labor markets experience growth confirmed by policy makers, yet economic activity was monitored as being slow (TRADING ECONOMICS, 2016). The risks associated with the financial developments of the country have ceased (TRADING ECONOMICS, 2016). The average percentage of interest rate in the U.S. averaged at 5.8. March of 1980 a record high was recorded at 20% (TRADING ECONOMICS, 2016). The lowest interest rates were recorded in the month of December 2008 at 0.25% (TRADING ECONOMICS, 2016).

Being born in August 13th of 1946, she is the sixty nine year old that is the current chairwoman of the Federal Reserve Board of Governors. Since the Federal Reserve is the central bank of the United States its responsibilities do include regulating other banks and financial institutions as well as dictating the monetary policy. In order to get into the Federal Reserve Board of Governors, one has to have a background in Economics. From her undergraduate education, she showed an interest for Economics, in 1967 she received her Bachelor of Arts from Brown University where Yellen received distinction of summa cum laude. Few years later, continuing the path towards pursuing Economics at the graduate level, she gained her Ph. D. in Economics in1971 from Yale University. Afterwards, Yellen served as assistant professor for Harvard University for its School of Business from 1971 to 1976 as well for the University of California, Berkeley from 1980 to 2004. Teaching at the Berkeley Hass School of Business involved teaching Macroeconomics, Introduction to International Business International for undergraduate and graduate. In collaboration with her husband George Akerlof, she published “How Large Are the Losses from Rule of Thumb Behavior in Model of the Business Cycle” in 1991.

During the Federal Reserve meeting in April 2016, the range was left unchanged for federal funds at 0.25 percent to 0.5 percent (TRADING ECONOMICS, 2016). Labor markets experience growth confirmed by policy makers, yet economic activity was monitored as being slow (TRADING ECONOMICS, 2016). The risks associated with the financial developments of the country have ceased (TRADING ECONOMICS, 2016). The average percentage of interest rate in the U.S. averaged at 5.8. March of 1980 a record high was recorded at 20% (TRADING ECONOMICS, 2016). The lowest interest rates were recorded in the month of December 2008 at 0.25% (TRADING ECONOMICS, 2016).

The Federal Reserve System has three branches: the Board of Governors, The Federal Open Market Committee, and Reserve Banks. The Federal Reserve System (Fed) supplies and regulates America’s money to all the banks. The Board of Governors is the main authority of the three branches of the Fed, and it supervises other banks. The Federal Open Market Committee is the most prominent policymaker of the three branches and regulates the supply of money in the economy. Federal Reserve Banks serve other banks, this is why they are called banker’s banks. There are twelve Federal Reserve Banks which represent different states and these “districts” share data for monetary policies. The future role of monetary policy is vital

1. What is the Federal Reserve Board (the Fed) and how does it attempt to prevent and curtail unemployment?

The Federal Reserve house the Board of Governors, The Federal Reserve Banks, The Federal Open Market Committee (FOMC), and Advisory Committees. The Federal Reserve Bank is directed by the Board of Governors or Federal Reserve Board, which is located in Washington D.C. The Board of governors is the national aspect of the Federal Reserve System and consists of nine board of directors which are appointed by the President serve a fourteen year term. The Chairman and Vice Chairman are appointed to four year terms which can be renewed (Federal Reserve, 2009). The Federal Reserve Banks are a network of 12 banks with 25 branches. Each banks serves a region of the country and the 12 locations are “Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco” (Federal Reserve System, 2001). These Federal Reserve Banks serve other banks, the U.S. Treasury and inadvertently, the public. The FOMC is made up of twelve members, seven from the Board of governors and five Federal Reserve Bank presidents (Federal Reserve System, 2001). The Advisory committee advises on the Federal Reserve System and provides information on the effect of system policies. The advisory committee includes the Federal Advisory Council, the Consumer Advisory Council, and the Thrift Institutions Advisory Council, which work together to advise individual Federal Reserve Banks on these interests (Federal Reserve System,

Andrew W. Mellon served as secretary of the Treasury from March 4, 1921, to February 12, 1932. Under the provisions of the original Federal Reserve Act, this meant he was also ex-officio chairman of the Federal Reserve Board.

The San Francisco branch of the Federal Reserve has a diversion on its site that gives you a chance to play at being Chair of the Federal Reserve. In the wake of tinkering with it, I 've arrived at a few conclusions: Modeling the economy is a mug 's diversion, fleeting loan costs are a poor instrument for guiding the economy, and I ought to never be given the employment of running a national bank.

Federal Reserve Chairman Ben Bernanke 's meeting dealt mainly with the issues that could stabilize the economy after the great recession. After creating a number of policies to fight the 2008 crisis, Chairman 's move to further reduce Quantitative Easing was a bit of a disappointment. The Fed will reduce its purchases of long-term Treasuries and mortgage-backed securities by another $10 billion a month. Apart from this, Fed is going to concentrate on maximizing employment rates, stabilizing prices and interest rates.

“All parenting manuals tell parents to maintain credibility and to set fair and firm rules. Most parents attempt to do so. But as all, or at least most, parents know, sometimes exceptions are necessary. Not all contingencies can be planned for.” Analogous to that, as the author, David Colander, points out is that policies can be created but there can be exceptions to any policy. To begin with, let’s consider the problem that arises from the fact that there is no oversight in the Federal Reserve. In other words, the Fed can do what it wants, i.e. increase or decrease the money supply, because of the discretion it has; almost like saying that police officers have no guidelines to follow and can do whatever they want with all the power their given. Second, the problem that arises out of the fact that the Fed assumes there is only one interest rate; however, there are various different types of interest rates. So this becomes a problem in the short-run but not necessarily in the long run, after the interest rates have averaged out. This means that consumer borrowing (or when banks lend money) they’ll do so differently because of the different interest rates that do exist. Third, exists with what I mentioned about the short-term and long-term effects; essentially, inflation,