Learn how the Federal Reserve works

Brian Cheung of Yahoo Finance discusses the three main functions of the Federal Reserve including conducting the nation's monetary policy,
making sure markets are financially stable and supervising and regulating financial institutions. Other topics he discusses are how the Federal Reserve was formed, interest rates and the Federal Open Market Committee (FOMC).

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[地球过客]

Please explain how the Fed Reserve print (produce) more USD without affecting the exchange rate of USD against other currencies like AUD, JPY etc?

[bobsmith]

The Fed sets asset prices, not the market. Since 1980s, the Fed has lowered interest rates and since 2008 the Fed has done QE to reward the asset owner class by raising asset prices. *These artificially low interest rates and QE have caused the year/generation you were born in to determine whether you are able to own a home and generate wealth* . The older generations bought homes for 1-2 times median income and bought stocks at 8 times PE ratios in the 1980s because asset prices were low because Volker set interest rates high. Then these people road the Greenspan, Bernanke, Yellen and Powell puts and became rich as their homes and stock portfolios increased +10% a year. *They became rich because they were simply born at the right time* . But the asset non-owner underclass (millenials and poor boomers who didn't accumulate assets in 1980s) deal with housing at 8-10 times median income (because wages didn't increase since 1980s), a bubble stock market that only went up because of QE and low interest rates. It is a shame that 99% of people have no idea that monetary policy and not fiscal policy deserves most of the blame. Eventually the asset non-owner underclass will revolt by electing an MMT president, who will inflate away the asset bubbles and make housing affordable again (and cause a depression in the process). Please spread the word so people can understand this and we can have a change in monetary policy. This is not a left vs. right thing, it affects all of us.

[jaym]

Fed has a button. It is connected to many bank accounts. When the FED presses the button, another zero is added to the end of the balances.

[ridds]

Money is worth nothing... Keep on printing it...

[stephengalindo]

So the federal reserve is neither federal.... Not a reserve

[shanef]

Who were those men on jeckel island that drafted the bill Woodrow signed?

[jamesbuchanan]

"Coin Shortage"

Why is there a coin shortage. Why did I wake up one morning and all of a sudden I couldn't get my change back from the convenience store.

As a matter of fact, I went in to my local gas station and was owed .59 cents in change. I wasn't able to get it. At that moment I was literally robbed for .59 cents by a business that already profits millions.

It's not just the .59 cents that they got from me. It's the total amount of free money they got that day by robbing the many people that chose to shop in their store.

Why is there not some other kind of a refund system, set up for people who chose to spend their hard earned money, at a place that is willing to steal from them at the expense of a seemingly excusable and justifiable cause, such as this coin shortage?

[marcy]

If you look at economic data over the last 9 nine years, particularly inflation/CPI data, you will see unmatched stability (0-3%) as far back as 1914. Now for sure new tools are being utilized unseen before 2012 to create such conditions. The question is, which tools, and how much human agency is being stripped away? If you look at how for instance precious metals were lowered in price dramatically from 2013 - 2015, and how financiers sold them with rigor. How Trump took office in early 2017 and inflation halted from a 2.7% high. Illnesses, from a personal level, and living costs skyrocketing in early to mid 2018, inflation yet again teetering on 3%. And, early 2020 inflation rearing its head again to be drowned by COVID-19. Questions start to arise. For sure the last 4-5 years have been obscure, to say the least.