Halfway through the first volume of the landmark history of the Federal Reserve. Not only having worked at the Federal Reserve, but having had lunch many, many times talking about his history, i have followed closely over time the massive transformations that has occurred at the fed, just since the financial crisis but over my lifetime. And before, and to think that the first 10 years of my life we were on the Gold Standard, you know, it suggests that things have changed a lot. And so when a friend at the wall street journal called up to ask if i would review a new book by a university of pennsylvania professor named peter contibrown called that are independent of the Federal Reserve, i jumped at the chance because of two things. One, i really do love that they. I think it had a big positive impact on my professional life at its a very important place in washington filled with people who want to do the right thing. They sometimes fail but i love the spirit of the food. The second thing
Annenberg media 1931. The Great Depression. Banks were failing by thousands. The Federal Reserve, created to prevent suca tragedy, only made things worse. What had gone wrong . 1951, during the korean conflict, president truman also faced another battle, between the Federal Reserve and the treasu, over financing the war. How would it be resolved . 1965, Lyndon Johnsons administration was spending on both a war and a greasociety 1965, Lyndon Johnsons admiwithout raising taxes. G the fed was left to fight the resulting inflation alone. The nations central bank, originally created to protect the Banking System against panics, acquired more power to affect the economy than even it imagined at the outset. The Federal Reserve does money matter . With the help of economic analyst richard gill, well explore that question on economics usa. Im david schoumacher. Coins, bilchecks our basic money supply. The amount of money and where it goes wiin the bankingysm has enhe main concern of our nations
1951, during the korean conflict, president truman also faced anoer battle, between the Federal Reserve and the treasu over financing the war. How would it be resolved . 1965, Lyndon Johnsons administration was spending on both a war and a greasociety without raising taxes. The fed was left to fight the resulting inflation alone. The nations central bank, originally created to protect the Banking System against panics acquired more powe to affect the economy than even it imagined at theutset. The federal serve does money matter . With the help of economic analyst richard gill well explore that question on economics usa. Im david schoumacher. Coins, billschecksour basic moy supply. The amount of money and where it goes wiin the bankingysm has en the main concern of our nations central bank. At t feds heauaers re in washington, dc closedeliberatioare held by experts who continuously monitor our nancial health and prescribe medies. How did these experts prescribe a remedy that plunged us
The fed was left to fight e resulting inflation alone. The nations central bank, originally created to protect the Banking System against panics, acquired more power to affect the economy than even it imagined at theutset. The Federal Reserve does money matter . With the help of economic analyst richard gill, well explore that question on economics usa. Im david schoumacher. Coins, bills, checks our basic money supply. The amount of money and where it goes wiin the banking sysm has en the main concern of our nations central ba. At t feds heauarters here in washington, dc, closedeliberatio are held bs who continuously monitorourh and prescribe remedies. How did these experts prescribe a remedy that plunged us even deeper in the Great Depression . Early in the0th century, american banks operated with little regulation and great vulnerability. In 1907, that vulnerability became apparent when depositors lost confince shorttermoa,tir money. E nkt and many colpsed. It took a powerful bankenf
Support is the committees outlook, we will likely reduce the securities purchases in further measured steps at future meetings. Of course, continued progress is by no means certain. Consequently, future be adjustments to the pace of asset purchases will be deliberate and dependent on incoming information. Host so, greg ip of the economist, what does all of that mean to the average american . Guest well, so take the most basic aspect of that. One of the aims of the bondbuying program was to hold down longterm treasury yields. Essentially, when you buy a bond, you push up the price, and that pushes down the Interest Rate on it, and because Mortgage Rates are usually linked closely to 3w07bd yield, the more are bought, the more it held down Interest Rates. Over the last eight months as the market became aware the Federal Reserve pulled back on this program, we saw some rebound in mortgage Interest Rates. What mr. Bernanke hope is the that by gradually continuing the process over the comin