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I'm not sure what the fed does that a giant national bank doesn't, at least if you're looking at an old school bank like the Bank of teh US. They lend to other
by HWR_14 5y ago
I'm not sure what the fed does that a giant national bank doesn't, at least if you're looking at an old school bank like the Bank of teh US. They lend to other banks! They print money! They buy assets!
- danielmarkbruce 5y agoThe big obvious ones: regulate and supervise other banks, settle interbank payments, explicitly act as a lender of last resort to stabilize the financial system as required. There are also other practical differences - for example, having a set, specific target for short term rates (the first bank of US didn't have a target rate, even if they did loosely have some ability to sort of influence rates).