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The Fed isn't "another" part of government. It's owned privately. That is really the main issue. It functions to make its members rich, anything positive is
by imsurgio 3y ago
The Fed isn't "another" part of government. It's owned privately. That is really the main issue. It functions to make its members rich, anything positive is kinda less benefit than if it were truly part of the government.
You might be thinking of the treasury.
- Aunche 3y agoYou're wrong at just about every point. The Fed is autonomous but still part of the government. Congress can revoke this if they really wanted to, but they won't because even they know that they'll just use it for their political scheming like they do with anything else they can get their grubby hands on. Jerome Powell made most of his money in private equity, and he could have stayed there he wanted more. Now, his compensation is less than that of a first year associate at Goldman Sachs. Before you bring it up, no, a few million dollars in speaker fees doesn't make up for this opportunity cost for a banker at that caliber.
- DANmode 3y agoYes, Jerome is a public servant who would give you the shirt off of his back. We'll see what private financial institution gigs he parachutes into after his current role. From another comment: Ben Bernanke now serves on the board of two of them (Citadel, PIMCO). And Alan Greenspan serves on three (Deutsche Bank, PIMCO, Paulson & Co).