The Myth of Independence: How Congress Governs the Federal Reserve

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Governance Salon: Sarah Binder and Mark Spindel

Born out of crisis a century ago, the Federal Reserve has become the most powerful macroeconomic policymaker and financial regulator in the world. The Myth of Independence traces the Fed’s transformation from a weak, secretive, and decentralized institution in 1913 to a remarkably transparent central bank a century later. Offering a unique account of Congress’s role in steering this evolution, Sarah Binder and Mark Spindel explore the Fed’s past, present, and future and challenge the myth of its independence.

Sarah Binder is professor of political science at George Washington University and senior fellow at the Brookings Institution. Her books include Advice and Dissent and Stalemate.

Mark Spindel has spent his entire career in investment management at such organizations as Salomon Brothers, the World Bank, and Potomac River Capital, A Washington D.C.-based hedge fund he started in 2007.
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The last sentence on last slide: “Next recession / economic crises may reveal there’s hardly any independence at all”. These words could not have been more truer in this current pandemic induced recession.

waztaz
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I find it funny that only Ron and Rand Paul would like transparency when it comes to the economy all other politicians are happy with no one overseeing the Federal Reserve.

albertogarcia
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In 2008, Bush's Federal Reserve provided liquidity to bail out insolvent banks.

In 2020, Trump's Federal Reserve provided enough liquidity to permanently support insolvent companies amidst historic debt.

The Fed can print all the money they want, but they can't print an economy. The question we all need to ask ourselves, is liquidity a cure for insolvency?

decentralizedfuture
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1776 - 1913 = 137 years, 1792 - 1929 = 137 years

calvinle
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IF THE FED CAN PRINT ALL THE FUNNY MONEY THEY WANT, WHY DO WE HAVE TO PAY FEDERAL INCOME TAXES?

WHY NOT GO STRAIGHT TO THEIR OWN SOURCE AND PRINT MORE MONEY TO PAY THE INTEREST?

AM I MISSING SOMETHING?

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