The Fed

[BigV]

The Fed (The Federal Reserve)

Originally Posted by TheMercenary

Do they set monetary policy?

Yes, they do set monetary policy.
From here:

Today, the Federal Reserve's responsibilities fall into four general areas.

Conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices.

Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers.

Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.

Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nation's payments systems.

Originally Posted by TheMercenary

Is there absolutely no political influence over it?

.... I sense a trap with the language "absolutely no(ne)". Come on... it is a governmental institution. If I were to overlook the obvious negative answer, I'll say that this outfit is not elected, and as such is built as well as we can build it to be resistant to political influence, much in the same way that our Supreme Court is designed to be resistant to political influence.

Originally Posted by TheMercenary

When is the last time the were audited?

The Board of Governors, the 12 Federal Reserve Banks, and the Federal Reserve System as a whole are all subject to several levels of audit and review. The Government Accountability Office (GAO) conducts numerous reviews of Federal Reserve activities. In addition, the Board's Office of Inspector General (OIG) audits and investigates Board programs and operations as well as those Board functions delegated to the Reserve Banks. Completed and active GAO reviews and completed OIG audits, reviews, and assessments are listed in the Board's Annual Report. (Before 2002, the reviews were listed in the Board's Annual Report: Budget Review.)

Originally Posted by TheMercenary

Is quantitative easing nothing more than printing money and an infusion of money (capital) to boost poor economic forecasts?

Quantitative Easing is just printing money, correct. The Fed has that magical power, true. Is it for the purpose to boost poor economic forecasts, well, that's a cynical expression to be sure, but of course. Why else would they do it at all?

Originally Posted by TheMercenary

Should the Federal Government be able to force private companies to do their bidding or control who sits as the King?

wtf?

Originally Posted by TheMercenary

How much did the American tax payer owe the fed in 2008 vs today?

The Fed isn't owed anything by the taxpayer, with the exception (convoluted) that the returns on the treasury bonds purchased by the Fed are in essence paid for by the taxpayer. but that's preeeety recursive.

Originally Posted by ZenGum

Dunno about youse guys, but down here official interest rates are set by the reserve bank. This was set up by the gubmint, and board members are appointed by the gubmint.
The reason for this was that interest rates are too sensitive to be entrusted to some political hack who is more worried about getting re-elected than the long term health of the economy. In 2007 we had an interest rate rise during an election campaign. There is no way a sitting politician would have had the nerve to do that.

Quantitative easing is kinda like printing money, only they just manipulate ones and zeros and don't even bother with the printing anymore.

If the greenback slides any further I'll be able to spit in the tip mug and make it overflow.

Originally Posted by TheMercenary

True dat. But it won't be worth much.

if ZenGum's spitting USD then it will be worth as much as your USD or my USD, but he might be getting them at a considerable discount if his labor/investments are delivering returns in a different currency (likely), unlike you and me who are probably being paid in USD.