Questions tagged [federal-reserve]

Questions about the Federal Reserve System of the United States of America with regard to government or politics. Use with the [united-states] tag. Do not use for broader economic questions

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Did the Federal Reserve discuss establishing currency swap lines with other countries?

In November 2011, the Federal Reserve announced that it had authorized temporary foreign-currency liquidity swap lines with the Bank of Canada, the Bank of England, the Bank of Japan, the European ...
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Is there an advantage for a central bank to not use a blend of private and public for its reserve bank system and make it fully public?

Pursuant to the Federal Reserve Act, each of the 12 Reserve Banks is separately incorporated and has a nine-member board of directors. Commercial banks that are members of the Federal Reserve System ...
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How does the Federal Reserve learn from its mistakes?

How does the Federal Reserve learn from its mistakes? Establishments use internal reviews, post-mortem analyses and other means to improve upon existing mechanisms and governance framework, but I am ...
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Was there ever an effort to reduce the term of the elected members of the Federal Reserve?

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on ...
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How can the U.S. government influence the Federal Reserve?

The Federal Reserve System is considered to be an independent central bank. It is so, however, only in the sense that its decisions do not have to be ratified by the President or anyone else in the ...
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Are there significant political advantages for commercial banks to become members of the Federal Reserve System?

Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks ...
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How was the Fed allowed to lend $142.8 billion to the two bridge banks (incl. SVB) if it "would not" lend to insolvent banks?

I'm rather confused how this was legally possible: Banks borrowed $152.85 billion at the Fed on Wednesday, up from $4.58 billion a week before, according to new data released Thursday. The daily ...
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Why didn't Silicon Valley Bank ask for a loan from the Fed as the lender of last resort?

Why didn't Silicon Valley Bank (SVB) ask for a loan from the Federal Reserve as the lender of last resort? Why did they, in order to give customers cash for withdrawals from deposit accounts, sell ...
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Does the Federal Reserve insure the money of all depositors?

Banking institutions in the United States are required to hold reserves‍—‌amounts of currency and deposits in other banks‍—‌equal to only a fraction of the amount of the bank's deposit liabilities ...
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Why is confidence in U.S. banking at 27%?

"Gallup first measured confidence in institutions in 1973 and has done so annually since 1993. This year's survey was conducted June 1-20.": "Now I am going to read you a list of ...
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Why did Jimmy Carter appoint Paul Volcker as Fed Chair? [closed]

I associate tight money with Thatcher, and after Thatcher, Reagan (who I also associate with Thatcher). Therefore, it came as a surprise to learn that it was Jimmy Carter who appointed Volcker - who I ...
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Are there some decisions that the Federal Reserve can make only with the President's or the government's approval? [closed]

Are there some decisions that the Federal Reserve can make only with the President's or the government's approval? I am wondering if that's the case, because the Federal Reserve can decide to hold ...
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Could the U.S. Federal Reserve cancel the U.S. dollars held in foreign country's reserves?

Say the U.S. wanted to punish or disable some foreign power that had lots of U.S. dollar reserves. Don't those foreign power reserves sit on a ledger (or a Federal Reserve chartered bank's ledger) ...
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How does the government hold the Federal Reserve accountable if the policy frameworks of the Federal Reserve are not legally binding obligations?

In my understanding, policy frameworks provide structured logical, causal relationships between the concepts, available evidence and policy recommendations. https://www.federalreserve.gov/econres/...
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Can other countries central banks impact the decision of the Federal Reserve?

Can other countries central banks impact the decision of the Federal Reserve? In theory, the Federal Reserve enact policies that will benefit the country, but given the dollar's reserve currency, it's ...
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Why are the reserve banks under the Federal Reserve system in the U.S. held privately?

"The Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." https:...
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How does the Federal Reserve insure there is no conflict of interest or minimize the conflict of interest within the organization?

“This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” said Sanders in a statement. “At a time when small businesses could not get affordable loans to create jobs, ...
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What are the mechanisms for limiting the power of the Federal Reserve Chairman?

What are the mechanisms for limiting the power of the Federal Reserve Chairman? Can the Federal Reserve Chairman make any decision by himself (if the president agrees), or is he limited somehow in the ...
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Are there any US politicians that want to reduce housing prices?

Over the last year, the Federal Reserve has propping up the already historically high housing market by purchasing/backing trillions of dollars of mortgages, preventing a decline in house prices like ...
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Why can't Biden just reverse Mnuchin's revocation of unused part of $455B, and defunding of the Federal Reserve's lending facilities?

Just edit this title if I didn't word it correctly. Why wouldn't Biden's renewal "imply a return to the status quo ante"? What does "seed funding from Congress" mean? Why can't ...
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If the Federal Reserve goes insolvent, what are the "significant political implications"?

I cite this Aug. 3 2020 august by Wells Fargo Research Team. Title is "Implications of Fed balance sheet growth". Please answer in simple English! I embolded the phrase in question. That ...
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Why are Central Banks cutting interest rates in response to COVID-19?

Central Banks around the world have cut interest rates in the past few days in response to the COVID-19 pandemic, including the US Federal Reserve (0-0.25%), the Bank of England (0.1%), and the ...
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What are the details of the Federal Reserve's $1.5 trillion injection?

According to the Wall Street Journal, in order to attempt to slow the economic contraction caused by the Covid-19 virus, the Federal Reserve has promised to inject $1.5 trillion into the economy, by ...
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Can the president of the U.S. fire, or have fired, the Fed Chair for not being 'independent'?

https://www.federalreserve.gov/aboutthefed/section10.htm The Section 10 of the Federal Reserve section 10 states that the President can remove the Fed chair for cause, but what does that mean? The ...
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What are the reasons why the Federal Reserve won't make public the transcripts of its meetings?

Is there a reason why the Federal Reserve won't make public the transcripts of its meetings? They officially gave the explanation that making the transcripts public would negatively impact troubled ...
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Can the president put his own likeness on money?

Preface, I am unsure of all the powers the Federal Reserve possess or who controls the Reserve outside of congress. However it is at the Federal level so I was wondering. What control over the ...
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Why does the President appoint the heads of the Federal Reserve Banks?

Isn't the Federal Reserve supposed to be an independent central bank? So, independent of the Legislative and Executive branches? How is it independent if the President & Senate choose who leads ...
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How much did banks profit from quantitative easing over a scenario where the Federal Reserve would have simply brought Treasury bonds directly?

When the US Federal Reserve did quantitative easing the Federal Reserve had multiple choices to go about it. They could have simply brought government bonds and thus benefit the US Treasury. Instead ...
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Can the U.S. government cut a check to taxpayers by printing more money?

I'm not talking about open market operations via the Federal Reserve bank, or indirect payments through lower taxes, but rather the U.S Treasury simply cutting checks and mailing them directly to ...
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The US has done lots of Quantitative Easing, so why does it not do the same for its debt?

The US government owes lots of money. When US-based banks and other financial institutions faced a similar problem (ok, not a similar problem, but a crisis) - the US government, through the Federal ...
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Who was responsible for appointing Loretta Lynch to the New York Fed in 2003?

The Wikipedia biography of Attorney General Loretta Lynch says that she held a board seat at the New York Fed from 2003 to 2005. On what basis did she get the job and who appointed her?
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Federal Open Market Committee Voting Procedure

The FOMC consists of 12 members. The Board of Governors. 7 seats are allocated for it, however currently only five are taken. Members should be appointed so that a "fair representation" of "financial,...
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Is there legal recourse for creditors if Treasury defaults on any (not necessarily all) of its debts?

This is a follow up to a previous question I had here Fed Authority I understand that once the government goes into default it triggers a number of different legal steps and procedures, such as CDS ...
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Federal Reserve authority to buy government debt

Does the Federal Reserve have the ability or authority to offer to buy (at a premium?) any government debts coming due and simply choose not to claim them from the Treasury? In context of the current ...
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Why did the US government let Lehman Brothers go bankrupt and not other Wall Street banks?

During the 2008 financial crisis, almost any of the major Wall Street banks could have gone bankrupt. Lehman Brothers was the unlucky one to be allowed to go bankrupt. The rest were bailed out. Why ...
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Why did the U.S. government shut down, if the Fed was providing funding through the bond buying program?

I understand that the current Federal Bond Buying program ($80 billion a month) is allowing a fixed supply of money to the American Government. If this is the case, then why did the government "shut ...
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Who can be nominated for Governor of the Federal Reserve system?

I know the President of USA appoints, and the US Congress confirms, the Governors of the Federal Reserve system, and that there can not be 2 Governors from the same Federal Reserve District, but can ...
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Implications of governments borrowing from a central bank rather than issuing money directly

Early in the history of the United States the political battle was fought between those who favored a strong central bank of the United States and others who felt the government reserved the right to ...
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