Is it me or Bernanke and the FED reserve are playing "GOD" next to regard to interest rate?
Answers:
what exactly do you chew over the ROLE of the FED IS.
THEY are god near repect to fiscal policy, interest rates and money supply. What they read aloud go. The unharmed discount is dependant on, and artificial by the decision.
its a big Joke. You would muse they want to serve the reduction quick but but it seem more approaching they are rolling dice-
The Federal Reserve have power over bank within the US as set forth contained by regulation by the US Congress. Part of that power is the responsibility to determine the appropriate rate of interest for short term loans between bank. In other words, they are doing their living.
You may dislike the chore they are doing, but it doesn't niggardly they are playing god.
LoL, financial noob. Bernanke is the monetary policy god.
But, as Jim Cramer say... THEY KNOW-THEY KNOW NOTHING!
as far as interest rates are concerned, they are god.
Godless possibly. As you already know, the Federal Reserve is a privately owned corporation which have a monopoly over U.S. monetary policy. They've be at the team game since 1914.
If you look at their monetary policy, in the belatedly 1920's, you can see how they precipitated and perpetuate the Great Depression which be the worst financial disaster within American history. Even Bernanke himself substantiated this.
What's funny to me is how most Americans appear obtusely badly informed of the private corporate disposition of the Federal Reserve and give the impression of being to expect it's merely another governing body agency. Fools everywhere despite the selling claims by Ditech that "folks are smart."
The Federal Reserve is in part a establishment agency and to a degree private (the appendage banks). In a nutshell, the Feds "policy agency" decision affect money flow between the "private" applicant bank.
Among their most celebrity role is their means to influence drastically short permanent status interest rates via their monetary policy. They set a target Fed Funds Rate which is essentially the rate at which bank borrow money from respectively other. They monitor this rate and try to stay as close as possible to it by adjust the money supply in the bank system.
I would read aloud their role is more of a terribly complex opposite deed near good opinion to the US cutback than it is "playing GOD".