Why the Federal Reserve Controls So Much of the Economy | WSJ

The Federal Reserve is central to the U.S. economy today, and it’s controlled by just 12 people. Its monetary policies can lower inflation or even spark a recession. The central bank says it’s dedicated to achieving its goals set by Congress to maximize employment and maintain price stability, but some of its decisions like raising interest rates are not always popular with Americans.

WSJ explains how the Fed became the power it is today and why it plays such a major role in the country.

0:00 Economic policies
1:02 The Fed’s creation
2:59 The FOMC’s creation
4:11 Great Inflation
6:18 Great Recession
8:07 Covid-19

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#Fed #Economy #WSJ

[diane.moore-]

Right now, we stand at a crossroad of possibilities in the market where the boundaries on what we can achieve is not just dictated by the Fed, or the world around us(war, inflation). There's always going to be recession for some people while others amass wealth, think about it.

[SeanTalkoff]

It's quite simple why rates are climbing with rising imports and falling exports, the FED is obviously to be blamed for banking crisis. Something will eventually break if they keep the quantitative tightening and higher interest rates. Is this really a good time to have some savings in stocks?

[michaelschiemer]

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

[micheal_mills]

The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?

[Patriciabanks]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[madesquire]

HE DID NOT SAY "MONEY PRINTER GO BRRR" 💀😂

[DonaldMark-nese]

Interesting, the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250, 000 stock portfolio> I'm seeking advice on the best strategy to capitalize on this current bear market.

[bahijarhafiri]

as an individual is very important to control

[WestonScally]

I am at the beginning of my "investment journey", planning to put $400K into dividend stocks so that I will be making up to 15% per year in dividends. Any advice?

[LuisLascanoValarezo]

Printing money for artificial inflation is basically taxing people that have cash savings

[Duttonmuffins]

Man, the Fed rate cuts are starting to mess with everything. I mean, they were supposed to help, but now I’m feeling the pinch. My savings of 600k is basically giving me nothing, and the stock market projection is all over the place.

[anujmeena]

I was hoping for more detailed analysis

[lakeguy]

The Fed's response to a crisis is often the catalyst for a future crisis that requires Fed intervention. The process repeats ad infinitum.

[AlekseyBorisov-wv]

as a beginner im searching for cues, i appreciate content such as this it gives us beginners hope.

[nicolasbenson]

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680, 000 savings vanish after putting in so much effort to accumulate them.

[NotyourBusiness-urto]

Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.

[AstaKristjan]

The Fed's recent hint of interest rate cut leaves me pondering what stocks to buy now and when do I sell? I'm unsure how to properly allocate my money to achieve an optimal portfolio in this present economy, my goal is $3m for retirement.

[luisespinoza]

The moment she broke script just to make the brrr sound killed me 😂

[nevoobrazimiy]

My God, I so love WSJ approach in these shorts!

[williamheckman]

I love how important facts are left out... Does anyone remember learning about the Fed in school? Yeah, because they simply don't teach it... I love how the Fed tries to "Crush Inflation" yet, the very definition of inflation is from increasing the money supply