Saturday, October 26, 2013

Who owns the Federal Reserve Bank of the United States? Good question that is sort of answered here...

Here is a nice primer from an independent source as to who (or what) "owns" the Federal Reserve Bank of the US ("The Fed" for short).  It is considered a "quasi-governmental" institution---a hybrid privately owned bank with heavy government oversight.  However, the lines are not really all that clear as to where one stops and the other starts.

"...But the Fed is a weird entity when it comes to “ownership”.  It exists due to an act of Congress.  But it is also considered an independent entity because it is not part of the Executive or Legislative branches of government.   The Fed exists because Congress created it, but it doesn’t enact policy measures with any Congressional or Presidential approval.  Politically, this makes it a very independent entity..."
An excellent supplement to the AP Macroeconomics unit on Monetary Policy.

Go HERE to read the whole thing...
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