The Duty of the Federal Reserve

561 WordsFeb 26, 20182 Pages
The Federal Reserve Act was signed into law on December 23, 1913. Due to a series of financial panics around 1907, the Federal Reserve (also referred to as the “Fed”) was created by Congress to promote a stable banking system and an active economy. The Federal Reserves’ greatest client and biggest spender is the government of the United States. All proceeds from taxes generated and disbursements are managed through the account that the United States government has set up with the Federal Reserve. The Fed operates independently of the government; however, the Feds’ jurisdiction originates from Congress and the Fed is subject to congressional supervision. Furthermore The President nominates the members of the Board of Governors which must be confirmed by the Senate. The salaries of the Fed are also set and appointed by the government. Although the Fed can exercise freedom in monetary determinations, the existing relationship with the government invites corruption particularly with the present administration and its champagne socialists. Thomas Jefferson in the Debate of the Recharger of the Bank Bill in (1809) warned that banking systems would decimate America. Regardless of the original premise of good intentions, whenever any system wields this much power manipulation and avarice ensue. Many consider the economic approach of our forefathers as too primitive and unsophisticated; however, the laws and standards they established has made the United States the

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