4 ms·

>our own Fed It's actually privately owned and not public.

rags2riches 6y ago
It's controlled by the US government and the US Treasury receives the proceeds. https://www.federalreserve.gov/faqs/about_14986.htm https://www.federalreserve.gov/faqs/about_14986.htm
- garmaine 6y ago
  Read the last few sentences critically. Each regional federal reserve bank (there are several) is owned by private banks. The profits are merely capped.
  - adventured 6y ago
    The ownership is nothing more than symbolic. They have absolutely no control over the Federal Reserve. They can set no policy, they dictate nothing through the 'ownership.' They receive profits in exchange for participating in the system, it's a lure for drawing in private banking participation. The profit share ("dividends") the banks receive is trivial, a couple percent of the Fed's profits. Typically 96-98% of profit is sent to the US Treasury.
    - throw1234651234 6y ago
      Who sets the policy?
    - thomashobohm 6y ago
      I have no idea why you're being downvoted; anybody should be able to understand that the Fed is independent (from the "government" in the typical sense of the word, but especially from private interests) by simply googling it. Do these conspiracy theorists really believe the Fed is secretly controlled by a cabal of private banks or something?
atentaten 6y ago
It's not part of the federal government, but it's supposed to be controlled by the federal government. The Board of Governors is an independent government agency that runs the fed. I would call it quasi-public.
treyfitty 6y ago
Not sure why you’re being downvoted. The Board of Governors is an agency, but there are 12 regional Federal Reserve Banks that carry out private operations. Critically, the FOMC, the monetary policy setting function, is a function that is carried out by the private regional banks. Most notably, the bailouts and private meetings back in 2008 were carried out by the president of the NY Fed.

It's controlled by the US government and the US Treasury receives the proceeds. https://www.federalreserve.gov/faqs/about_14986.htm https://www.federalreserve.gov/faqs/about_14986.htm

garmaine 6y ago
Read the last few sentences critically. Each regional federal reserve bank (there are several) is owned by private banks. The profits are merely capped.
- adventured 6y ago
  The ownership is nothing more than symbolic. They have absolutely no control over the Federal Reserve. They can set no policy, they dictate nothing through the 'ownership.' They receive profits in exchange for participating in the system, it's a lure for drawing in private banking participation. The profit share ("dividends") the banks receive is trivial, a couple percent of the Fed's profits. Typically 96-98% of profit is sent to the US Treasury.
  - throw1234651234 6y ago
    Who sets the policy?
  - thomashobohm 6y ago
    I have no idea why you're being downvoted; anybody should be able to understand that the Fed is independent (from the "government" in the typical sense of the word, but especially from private interests) by simply googling it. Do these conspiracy theorists really believe the Fed is secretly controlled by a cabal of private banks or something?

atentaten 6y ago

It's not part of the federal government, but it's supposed to be controlled by the federal government. The Board of Governors is an independent government agency that runs the fed. I would call it quasi-public.

treyfitty 6y ago

Not sure why you’re being downvoted. The Board of Governors is an agency, but there are 12 regional Federal Reserve Banks that carry out private operations. Critically, the FOMC, the monetary policy setting function, is a function that is carried out by the private regional banks. Most notably, the bailouts and private meetings back in 2008 were carried out by the president of the NY Fed.