Why the Federal Reserve Controls So Much of the Economy | WSJ

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The Wall Street Journal

The Wall Street Journal

День тому

The Federal Reserve is central to the U.S. economy today, and it’s controlled by just 12 people. Its monetary policies can lower inflation or even spark a recession. The central bank says it’s dedicated to achieving its goals set by Congress to maximize employment and maintain price stability, but some of its decisions like raising interest rates are not always popular with Americans.
WSJ explains how the Fed became the power it is today and why it plays such a major role in the country.
0:00 Economic policies
1:02 The Fed’s creation
2:59 The FOMC’s creation
4:11 Great Inflation
6:18 Great Recession
8:07 Covid-19
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#Fed #Economy #WSJ

КОМЕНТАРІ: 352
@Mr-sweeny
@Mr-sweeny Місяць тому
Our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
@Nernst96
@Nernst96 Місяць тому
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
@PatrickLloyd-
@PatrickLloyd- Місяць тому
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
@PhilipDunk
@PhilipDunk Місяць тому
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
@PatrickLloyd-
@PatrickLloyd- Місяць тому
‘Amber Dawn Brummit’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@PhilipDunk
@PhilipDunk Місяць тому
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
@WestonScally7614
@WestonScally7614 6 днів тому
I am at the beginning of my "investment journey", planning to put $400K into dividend stocks so that I will be making up to 15% per year in dividends. Any advice?
@Mckennie61751
@Mckennie61751 6 днів тому
Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio.
@louis71350
@louis71350 6 днів тому
Consider diversifying your portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.
@Emmanuel90970
@Emmanuel90970 6 днів тому
Partnering with a financial advisor has transformed my approach to investing. Their expertise and personalized guidance have not only helped me navigate complex financial markets but also optimized my portfolio to achieve my long-term goals efficiently.
@AddilynTuffin
@AddilynTuffin 6 днів тому
This is definitely considerable! think you could suggest any professional/advisors I can connect with? I'm in dire need of proper portfolio allocation
@Emmanuel90970
@Emmanuel90970 6 днів тому
*Jennifer Leigh Hickman* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets.
@madesquire2796
@madesquire2796 9 місяців тому
HE DID NOT SAY "MONEY PRINTER GO BRRR" 💀😂
@jessek.5899
@jessek.5899 9 місяців тому
😂
@jesustsa1
@jesustsa1 9 місяців тому
He didn’t! That was actual audio of a money printer 😅
@LuisLascanoValarezo
@LuisLascanoValarezo 9 місяців тому
Printing money for artificial inflation is basically taxing people that have cash savings
@badluck5647
@badluck5647 9 місяців тому
It has also been a great business opportunity for businesses to earn more profit. They justify price increases by pointing to inflation while the wage increase becomes inelastic by comparison.
@robertbruhcuh3634
@robertbruhcuh3634 7 місяців тому
@@badluck5647rich people getting rich broke people getting dug deeper
@DippedInInk
@DippedInInk 5 місяців тому
Is it?
@programking655
@programking655 4 місяці тому
Except that nominal interest rates adjust upwards, so no, it’s not taxing anything
@babybison2881
@babybison2881 3 місяці тому
​@@programking655 no, he's right. It's free money for the Fed. It's not backed by anything. They artificially inflate or deflate interest rates. All in the name of making money off the average American. It's a tax no matter how you look at it.
@lakeguy65616
@lakeguy65616 9 місяців тому
The Fed's response to a crisis is often the catalyst for a future crisis that requires Fed intervention. The process repeats ad infinitum.
@greg4367
@greg4367 9 місяців тому
Ad infinitum, ad nauseam, never EVER learning from their mistakes.
@kaig9707
@kaig9707 9 місяців тому
Ad infinitum… until the currency collapses.
@Acteaon
@Acteaon 9 місяців тому
And yet we don’t reconsider something else
@teEnTYoNG
@teEnTYoNG 9 місяців тому
​@@Acteaonlaissez-faire free banking
@_ata_3
@_ata_3 9 місяців тому
Sure lakeguy65616
@nicolasbenson009
@nicolasbenson009 7 місяців тому
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
@davidgarcia4576
@davidgarcia4576 3 місяці тому
Hopefullyl youre holding some BTC
@tonicruger
@tonicruger 8 місяців тому
Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.
@kurttSchuster
@kurttSchuster 8 місяців тому
Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals
@eastwood224
@eastwood224 8 місяців тому
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
@Mcllwain
@Mcllwain 8 місяців тому
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
@eastwood224
@eastwood224 8 місяців тому
There are a lot of independent advisors you might look into. But i work with Nicole Desiree Simon , and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
@Mcllwain
@Mcllwain 8 місяців тому
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
@anujmeena
@anujmeena 9 місяців тому
I was hoping for more detailed analysis
@mmorphy4258
@mmorphy4258 2 місяці тому
go to Edward G Griffin for that
@denovo62
@denovo62 2 місяці тому
In 9 minutes? This was a total propaganda piece. Wall Street and the Fed are two sides of the same coin and with this being a Wall Street Journal piece go figure. The presidents and Congress are beholden to the Fed not the other way around. The Fed is the real mafia and the CIA is their intelligence arm. At it's establishment in 1914 on the eve of WWI, you could say that was the official coup of the United States of America. Both world wars were their doing. And not only the oil of the middle east was their goal but esp the chemical industry of Germany that brought us into the modern petrochemical world post WWII. Plus the extinguishing of socialism in Russia and Germany that gave fire to our labor revolts in the early twentieth century. And all of this has been accomplished going forward with the establishment of the Breton Woods financial instruments like the IMF and World Bank that allowed the U.S. to convert all the colonies of Britain, France, etc into financial colonies and the takeover of their industries and raw resources thru debt ridden structural adjustment loans and CIA coups. All Wars are Banker's Wars is a short half hour doc that gives some history here. I think the other commenter above suggested another. Predator Nation is an essential book to check out, by the author/director of the best documentary out there on the subprime mortgage crisis but who also details the fifty year takeover of our economy via the financial crises that have littered every decade since Nixon took us off the gold standard and the Fed began it's rise again following the New Deal and Glass Steagall legislation during the great depression that separated wall street from banking. The savings and loan crises of the 80s, the mergers and acquisition and hostile takeover phase that followed, and all the creative, ie manipulative financial instruments that each crisis gave them more money and subsequent power to destroy the regulatory laws that kept them in check, leading to the dissolving of glass steagall end of 1990s and onward onto the subprime mortgage crisis of 2008. Frank Dodd was essentially written by them and had allowed for the rise of Black Rock and Vanguard and other private equity firms and all the qualitative easing that's ensued thus which is really about privatizing not only our economy but the rest of the world's too via all these wars which are being paid for with printed money. We don't have a real economy anymore. Wars aren't sustainable, the sickness industry isn't sustainable and most factories have been farmed out to other countries to be able to exploit their cheap labor and lax pollution laws, etc, that their ability to bring us under total control in order to bring about their next grand war will be as easy as flicking the first domino piece and it all falling into place for them. They hate riots and protests when they orchestrate these ugly wars and takeovers so they're doing everything possible to thwart every natural movement before it has a chance to turn into a real flame of an uproar.
@Howaboutyoublow
@Howaboutyoublow 9 місяців тому
“Business and politicians got together and decided that relying on wealthy people to do the right thing was not the best option… so we created the fed” translates to “Bankers realized it was too expensive to pay for their mistakes, so they came up with a way to steal your money indirectly instead”
@19MAD95
@19MAD95 9 місяців тому
The perfect comment
@bolasblancas420
@bolasblancas420 8 місяців тому
Laisser-faire no more.
@rhymerez
@rhymerez 8 місяців тому
got together should be replaced with took a train in secret to jekyll island to craft it, then passed the legislation also in secret when most people were enjoying christmas and new years.
@libyann9385
@libyann9385 7 місяців тому
Yes
@DippedInInk
@DippedInInk 5 місяців тому
U actually believe that?
@vincentstewart1843
@vincentstewart1843 2 місяці тому
Should I give up on Trade? What should I do? How may I do better? What I'm I doing incorrectly?
@vincentstewart1843
@vincentstewart1843 2 місяці тому
here is my problem I have been making losses trying to make trade. I thought to trade demo is just like the real..can anyone help me out or at least tell me on what to do.
@maureen...
@maureen... 2 місяці тому
I always advice new members to have an orientation on how it works before getting involved. Trade offers more benefits than just holding.
@maureen...
@maureen... 2 місяці тому
Kate Floretta Face book
@Mayor1248
@Mayor1248 2 місяці тому
having a mentor is also very important when it comes to Trade, with out that, it can be very frustrating.
@Mayor1248
@Mayor1248 2 місяці тому
you must have these things in mind 1. Have a long term mindset. 2. Be willing to take *risk*. 3. Be careful, if you're not spending to earn back, then stop spending. 4. Never claim to know - Ask questions and it's best you work with an assistant.
@benjaminlehman3221
@benjaminlehman3221 9 місяців тому
Part of economics is that there are recessions and troughs. If the fed never lets things fail and prices go down then inflation will continue.
@eco-nutjob
@eco-nutjob 9 місяців тому
No, that is part of the broken system of capitalism. The Fed is just a puppet attempting to 'control' inflation and interest rates, while realistically, these things are not controllable.
@I-Know-Best
@I-Know-Best 9 місяців тому
What are you talking about? "If the fed never lets things fail and prices go down then inflation will continue" ??? Thats called DEFLATION
@josephlynch7655
@josephlynch7655 9 місяців тому
Deflation is bad actually
@tomlxyz
@tomlxyz 9 місяців тому
Recessions aren't necessary, they're just the product of the current system
@weird-guy
@weird-guy 9 місяців тому
You want deflation? Every country has a target of 2% inflation , now that inflation is coming down most prices will not come down, governments were to slow imo to increase interest and stop “the bleeding”. My country right now has inflation of 3,4%, the only prices that come down was petrol/diesel, essential products because the government changed vat from 6% to 0%,electricity I think is predicted to come down but nothing more, mortages on loans of 150K€ increased 200€,we have a housing crisis because we need immigration but there not enough houses do to the previous financial crisis, my government right now has more money than ever before but the tax burden is the highest it ever been, but people are worst off
@sureshnishtala2887
@sureshnishtala2887 9 місяців тому
Very well Explained about the origins of The Federal Reserve. It started with a crises and learning at each and every crises.
@shellylofgren
@shellylofgren 9 місяців тому
The market and the Fed consistently underestimate the sticky nature of inflation. The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?
@berkrix4312
@berkrix4312 9 місяців тому
Even though there will probably be more pain in the future, investors should look for stocks like Royal Philips NV and Alstom SA that have been sufficiently battered down to be a bargain or get a great portfolio manager.
@theresahv
@theresahv 9 місяців тому
That's why I'm creating more income streams that I have complete control over. These will take me places that my day job never could. The earlier you start investing your money and putting it to work, the more time compound interest has to work its magic on your portfolio. This is how I'm going to achieve early retirement and it's possible for everyone. understand , know the path needed and stay committed to the craft
@jeffery_Automotive
@jeffery_Automotive 9 місяців тому
@@theresahv How are we going to achieve all that given that the market has being a mess most of the year seems farfetched. I keep hearing that the market is pricing in a 60% probability of a 75 hike. But isn’t it also pricing in a dovish fed that’s going to pívot relatively quickly?
@theresahv
@theresahv 9 місяців тому
My advisor Julie Anne Hoover’is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@jeffery_Automotive
@jeffery_Automotive 9 місяців тому
@@theresahv Thank you for this tip , I must say, Julie Anne Hoover appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, educational background, and qualifications, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
@nevoobrazimiy
@nevoobrazimiy 9 місяців тому
My God, I so love WSJ approach in these shorts!
@weirdshibainu
@weirdshibainu 9 місяців тому
"The Fed is just this poorly understood and really important institution in our country"....and the Fed likes it like that.
@micheal_mills
@micheal_mills 5 днів тому
The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?
@donna_martins
@donna_martins 5 днів тому
I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of five percent. Put money aside for the times when the market really starts to bounce back.
@robert-1miller
@robert-1miller 5 днів тому
45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.
@ilyaveysman.
@ilyaveysman. 5 днів тому
It appears that your investment advisor is highly skilled. Could you please let me know if you are still in contact with this advisor and, if so, how?
@robert-1miller
@robert-1miller 5 днів тому
Finding financial advisors like ‘vivian jean wilhelm’ who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
@ilyaveysman.
@ilyaveysman. 5 днів тому
Thanks for sharing, I just liquidated some of my funds to invest in the stock market, I will need every help I can get.
@FenellaMarshall
@FenellaMarshall 9 місяців тому
The points in the video I very much agree with my advisor, in meetings with him I often hear class him say these. Even he is often on the news and mentioned many times in some interviews. People can also raise these issues with him. By his name. Dan Price CFA.
@NguyenThanh-in7gf
@NguyenThanh-in7gf 9 місяців тому
How to find him.
@FenellaMarshall
@FenellaMarshall 9 місяців тому
@@NguyenThanh-in7gf If you need a broker recommendation, I recommend Dan Price C FA.
@FenellaMarshall
@FenellaMarshall 9 місяців тому
@@NguyenThanh-in7gf You can find him online and I have learned a lot from him.
@07gang80
@07gang80 9 місяців тому
I had the pleasure of meeting the advisor, Mr. Dan Price. His expertise as an investment mentor is outstanding. With his guidance, I was able to successfully achieve my investment goals. I truly appreciate his help and support! I look forward to continuing to work with him for more investment success!
@marisahokefazi2949
@marisahokefazi2949 9 місяців тому
In the 1980s and 1990s one could subscribe to newsletters from each fed bank and would be sent these wonderful informative financially Educated news letters. Then for some reason they decided to stop. That was a terrible idea because it really hurt financial literacy. The fetch of start making those news letters available again.
@riddell26
@riddell26 6 місяців тому
You literaly paid for propaganda, and got upset that they stopped sending propaganda
@luisespinoza2929
@luisespinoza2929 9 місяців тому
The moment she broke script just to make the brrr sound killed me 😂
@chrish3305
@chrish3305 27 днів тому
Great overview, thanks
@haythamal-dokanji9547
@haythamal-dokanji9547 8 місяців тому
Informative and stylish presentation. Keep it up WSJ.
@Brandon-xp1ob
@Brandon-xp1ob 5 місяців тому
It's not informative, it's propaganda
@davisoaresalves5179
@davisoaresalves5179 9 місяців тому
The most powerful institution in the world.
@NicholasBall130
@NicholasBall130 День тому
The system is failing as a result of both government and federal policy. In the next days, the banking crisis would have to be epic and gigantic for the FED to decide not to raise interest rates. This won't happen; an increase and a crash are coming. There will be more negative portfolios this 2nd half of 2024 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
@EleanorBaker474
@EleanorBaker474 День тому
Just ''buy the dip'' man. In the long term it will payoff. High interest rates usually mean lower stock prices, however investors should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder
@StacieBMui
@StacieBMui День тому
Very true, you can be passively involved in the markets and still amass wealth-gains using an investment advisor. I first dabbled in stocks late 2019, just before the pandemic, and that same year gained over 150% with no prior investing experience, basically all I was doing was following directions of my advisor. We are working on a retirement ballpark of $3m and I’m certain my goal isn’t farfetched after subsequent investments and tremendous returns so far.
@StocksWolf752
@StocksWolf752 День тому
My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
@StacieBMui
@StacieBMui День тому
Credits goes to " Sonya lee Mitchell" one of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
@eddieloujones2673
@eddieloujones2673 6 місяців тому
Printing money is like reverse Robin Hood. Steal from the poor to give to the rich.
@teashea1
@teashea1 9 місяців тому
very well done. effective to minimize the number of experts instead of having many. excellent.
@pwp8737
@pwp8737 9 місяців тому
Hmm...so oligarchs decided to socialize the risks of banking and privatize the profits. Aint capitalism grand?
@rustyschackleford5800
@rustyschackleford5800 9 місяців тому
The FED doesn't control all interest rates. They can affect short term rates and manipulate the bond market, but they don't simply "raise rates." The capital markets are bigger than the FED.
@cbatchler
@cbatchler 9 місяців тому
I get what you are saying but 90% of HELOC, commercial lines, and loans are tied to the prime rate which is fed funds +3, so when the fed changes that rate all those loans follow. That's a huge influence and everything else would be priced and correlated to that. Good old supply and demand.
@Adam_The_Archivist
@Adam_The_Archivist 9 місяців тому
@@cbatchlerno actually most mortgages, corporate debt and to a lesser extent home mortgages are tied to the 10 yr Treasury rate. You are correct on the +3%. If you look at the current 10 year and add 3% you are at the national average of roughly 7% give or take..
@cbatchler
@cbatchler 9 місяців тому
@@Adam_The_Archivist Not really, what you are saying is the correlation or spread of two different loan products. If that were true then why do I have a 3.25% mortgage in Oct of 2016 when the 10-year was at 1.7%? That would suggest my mortgage should be 4.7% and not 3.25%, Right? Think of it this way, on a highway the speed limit is 55 MPH but most cars are going 60, some going 65-70 and some 75 MPH. Those cars are willing to take the risk of going faster just as investors are willing to pay different rates for different products and as speed limits change so does their speed. So the loans aren't tied to the 10-year Treasury, that is just a frame of reference to compare other loan rates too. I have a commercial line of credit with Key Bank and it says the rate is 6 points plus the prime rate, it doesn't say anything about the 10-year US Treasury in its pricing model, nor have I ever seen a loan price itself to the 10 year. Hence the Fed sets the line and every one prices and moves around that line and then supply and demand sets in just like a speed limit.
@ISpitHotFiyaa
@ISpitHotFiyaa 9 місяців тому
Historically that's true. But at this point their balance sheet is so huge that they pretty much do control the bond market. If they unloaded all their mortgage backed securities at once then long term rates would spike. Or they could drop rates to 2% by printing money and buying mortgage backed securities like they did in 2020. They don't operate according to the economics textbooks anymore. Things changed in 2008.
@tomlxyz
@tomlxyz 9 місяців тому
They can affect much more if they wanted
@omercakmak3099
@omercakmak3099 8 місяців тому
what is the model of the car in 6:22 ?
@Nolsie
@Nolsie 9 місяців тому
End the Fed.
@_ata_3
@_ata_3 9 місяців тому
How are politics and economic policies different?
@prairiepatriot2162
@prairiepatriot2162 9 місяців тому
At some point, you have to take the training wheels off and let bad economic (fiscal) policy run its course; if people had to suffer the consequences of bad election decisions, they might vote smarter. Eventually if you keep inflating a balloon (money supply) it will pop. Deficits and debt cannot be increased indefinitely without consequence. Which is more painful, recessions or a currency collapse; anyone who's lived under socialism can tell you that it is the latter.
@microsoftpain
@microsoftpain 9 місяців тому
finally, someone with a brain. 💀
@mckcpaul1
@mckcpaul1 8 місяців тому
This video shows you that the FED after 113 years from its inception still has barely a clue of what it is actually doing, still throwing things and solutions against the wall to see if they stick, how much longer are people going to put up with dangerous cartel!
@Brandon-xp1ob
@Brandon-xp1ob 5 місяців тому
On point. Only buerocrats can do a job so terribly for decades and still exist. I hear the central banks in Argentina and Lebanon are doing well though😂🤦
@microsoftpain
@microsoftpain 9 місяців тому
END THE FED!
@f.anvary7783
@f.anvary7783 9 місяців тому
I can explain it in 9 seconds! Bunch of criminals who never get caught!!
@Pyrrhic.
@Pyrrhic. 9 місяців тому
Fun fact, when surplus trading nations like China, Saudi Arabia, and Japan invest their USD reserves in treasuries instead of converting it to their own currency, that pushes down long term or shorter interest rates, depending what maturity they buy. Feds can’t control that.
@tomlxyz
@tomlxyz 9 місяців тому
Yes, that's mainly what keeps the US afloat. Import wares, export investments and USD debt
@Pyrrhic.
@Pyrrhic. 9 місяців тому
@@tomlxyz it’s also to keep their own currency devalued, making their exports more attractive. Also US financial markets is arguable the best in the world to invest their profits.
@damnguen1726
@damnguen1726 8 місяців тому
@@Pyrrhic.maybe their currencies are so devaluated that even they dont want to hold them :v
@pinkietoes
@pinkietoes 7 місяців тому
Your claim makes no sense since Tbills are short-term government debt instruments without any interest rate, but instead purchased at a discount.
@riddell26
@riddell26 6 місяців тому
The Feds dont even control the Federal Reserve
@cbbcbb6803
@cbbcbb6803 9 місяців тому
It seems to me that the Federal Reserve actually makes (prints) money. Regular people get money by, hopefully, "earning" it. Keep in mind that economy and the financial are not the same thing as the people. The economy can be great and, at the same time, people may not be doing well at all.
@mariavictoriacaringal6795
@mariavictoriacaringal6795 3 місяці тому
How can I exchange my Federal Reserve Notes 1934-A 1000$ ? Where do I go to have it exhanged for the current rate? Thank you.
@victorco.6308
@victorco.6308 9 місяців тому
responsible and necessary decisions are not always popular
@DevonLadd
@DevonLadd 19 днів тому
Very nice
@Danny-fs1hk
@Danny-fs1hk 8 місяців тому
This was an excellent segment. They explained the Fed in simple terms.
@lakeguy65616
@lakeguy65616 9 місяців тому
The problem is since 1977, the Fed is tasked with a dual mandate; full employment & price stability. Full employment creates inflation and low inflation requires some level of unemployment. Return the Fed to a single task of price stability. I'd go one step further, Iimit the Fed's ability to grow the money supply to growth in GDP. The Fed's policies created today's inflation.
@greg4367
@greg4367 9 місяців тому
That isn't the problem, it's the cover story.
@gund89123
@gund89123 9 місяців тому
US has not seen high inflation in decades. Inflation we see today is most because of COVID disruptions, federal government spending on PPP loans & writing checks to people during COVID, & supply chain disruptions.
@lakeguy65616
@lakeguy65616 9 місяців тому
@@gund89123 Inflation is a monetary phenomenon where too much money is chasing too few goods and services. And its almost always a consequence of government action.
@teEnTYoNG
@teEnTYoNG 9 місяців тому
Even better would be to get the government out of the system. Under free banking in the us we had near zero inflation and laissez-faire banking is much more stable. Central planning is terrible as the fed has shown.
@lakeguy65616
@lakeguy65616 9 місяців тому
@@teEnTYoNG either you didn't watch or didn't understand the video
@andis9076
@andis9076 9 місяців тому
Not just US, it's the WHOLE WORLD !
@LhotseMS
@LhotseMS 3 місяці тому
I love how they just glance over “but bank don’t keep that much money” - maybe the fractional reserve system is the issue?
@ClassicNed
@ClassicNed 9 місяців тому
But here’s the problem! The central bank’s in Europe, have played a dominant role on members who chair the Federal Reserve.
@Based_Sir887
@Based_Sir887 9 місяців тому
End the fed.
@zayseeu8337
@zayseeu8337 8 місяців тому
how can i work there
@masterstacks2030
@masterstacks2030 9 місяців тому
END THE FED
@boitumelosekgothe
@boitumelosekgothe 9 місяців тому
@Wendoverproductions I think you can do a better job producing a video on this topic of central banks.
@infocrypt
@infocrypt 8 місяців тому
Cancel federal reserve. The only way to stop money printing.
@fieldboy7507
@fieldboy7507 13 днів тому
THE CRAZZY PART IS THAT WE ARE LIVING IN THE HYPER INFLATION N ITS ONLY GONNA GET MORE WORSE FROM NOW ON
@markhirstwood4190
@markhirstwood4190 9 місяців тому
Timiraos says 'imporduhn' (important).
@JamesFarming
@JamesFarming 8 місяців тому
Why did the WSJ stop making videos?
@claudiobv01
@claudiobv01 9 місяців тому
Why the fed controls so much the economy?? 😂😂 that’s a good one!
@vaughnbay
@vaughnbay 9 місяців тому
There are massive winners and massive losers for every FED action. Interesting how the FED never talks about the losers. What a biased video.
@usasylee3919
@usasylee3919 9 місяців тому
Bernanke planted a time bomb. You can't stop it :(
@Pyrrhic.
@Pyrrhic. 9 місяців тому
It started with Greenspan to be honest
@raybod1775
@raybod1775 8 місяців тому
Nobody created as much money as the current Fed.
@loukramer152
@loukramer152 9 місяців тому
The fed may have taken the punch bowl away, but the WSJ reporting drank the Koolaid anyway!
@michaelyoon9355
@michaelyoon9355 5 місяців тому
Printing money recklessly without having an answer for declining real income growth for the vast majority of people is irresponsible.
@Hokua888
@Hokua888 9 місяців тому
Yea.
@alberthoffman5297
@alberthoffman5297 5 місяців тому
I think this comment section needs to attend a mandatory economics class
@sunalwaysshinesonTVs
@sunalwaysshinesonTVs 9 місяців тому
Wait? What's there to explain? Regan told me running the American economy is like running a household budget -easy peesy.
@vinesthemonkey
@vinesthemonkey Місяць тому
the issue at the start was FRACTIONAL RESERVE BANKING
@69pepe420
@69pepe420 9 місяців тому
BITCOIN
@nathanaeltekalign2508
@nathanaeltekalign2508 3 місяці тому
The Federal Reserve confuses monetary inflation with non-monetary inflation. Monetary inflation is caused by an increase in the money supply. The inflation of the 1970s was monetary inflation because the Nixon Shock happened during 1971. The inflation that happened during 2022. Non-monetary inflation was caused by supply chain issues that would have gone away even if interest rates were never raised in the first place. Therefore, interest rate increases were inappropriate during 2022, even if they appropriate during 1978. Also, the Federal Reserve should focus on the rate that the money supply increase rather than the inflation rate.
@hans6304
@hans6304 9 місяців тому
Very rich institution.
@ranickhaan
@ranickhaan Місяць тому
This only confirms government is never the answer.
@jakemcgrath9708
@jakemcgrath9708 9 місяців тому
“Tell him that we’re gonna lock him up in the federal reserve!”
@AK36677
@AK36677 8 місяців тому
END THE FED!!!!
@masterstacks2030
@masterstacks2030 9 місяців тому
The 70s inflation was from the depeg from gold
@Lazaven
@Lazaven 2 місяці тому
So we’re not gonna talk about Jeckle island?
@THYCR3AT0R
@THYCR3AT0R 7 місяців тому
So in gen-z terms the USD is the exact same as crypto and the bubble is being torn apart be cause of greedy rug pullers, got it.
@chaiszcash4206
@chaiszcash4206 2 місяці тому
This video was BOMB 💣 boom lol
@nonyabuiz2023
@nonyabuiz2023 2 місяці тому
Why is Interest paid on fiat currency?
@BUBBLETEABOY
@BUBBLETEABOY 9 місяців тому
Money Machine goes brrrr
@remsee1608
@remsee1608 9 місяців тому
Its a way for them to steal your money
@clandestine2162
@clandestine2162 8 місяців тому
Fed reserve controls dollars,.thats why other currencies connot take on dollar,and it is widely use.even countries with huge economy struggles to create a new banking system that wil surpass the old payment system
@TonyFarley-gi2cv
@TonyFarley-gi2cv 7 місяців тому
So federal I see out there there's some young children that have graduated high school and college but as a young child they're still not allowed to work and most of these colleges well I'm not sure most of them but some of them are book type now as a young child work experience comes in mind so do you think it'd be a cool idea to send some of them to like MIT or some of these engineer bill structures and because they're younger and child means our stuff can't be gone through you can theoretical stuff and put it in with some of them to learn into that or seeing what they bring to the table by other ones that want to participate with them as a kid
@davidwalsh9807
@davidwalsh9807 9 місяців тому
FEDNOW ramping up
@AnthonyJohnson-gr3xj
@AnthonyJohnson-gr3xj 9 місяців тому
Shout out STL
@jwong478.
@jwong478. 9 місяців тому
That fiat money system😅
@zacharyparis
@zacharyparis 9 місяців тому
It’s built to fail. A debt based system is not sustainable.
@michaelglendinning1738
@michaelglendinning1738 7 місяців тому
Money that is real can be not real, and money that is not real can be real. That pisses me off!!!!!!!
@vinsage8979
@vinsage8979 7 місяців тому
the fed reserve has no reserves
@aroundandround
@aroundandround 7 місяців тому
The job of FOMC is fun; no one has any real idea what the economy will do in response to their actions but they keep winging it.
@abgzulkifli
@abgzulkifli 9 місяців тому
You didn't say who help Federal Reserve dns
@oas8766
@oas8766 8 місяців тому
"prrr in 2020" lol they print 10 billion a month!!!! in 2020 they printed 5 TRILLION in a few months!!!
@ryan_dasan
@ryan_dasan 8 днів тому
Hey there! I've been pondering about something, and I was hoping you could help me out. So, as you know, we have a mixed system government with a federal reserve. But here's what's been on my mind - doesn't that make us partially communist? I've asked some people about this, and they've mentioned something about the central bank being Marxist. I'm not entirely sure what that means. Can you shed some light on this for me?
@franco521
@franco521 9 місяців тому
The Fed monetizes the debt of the US government by issuing Federal Reserve Notes. Why not cut out the middle man (the Fed) and save hundreds of billions of dollars in operational expenses and let the US Treasury issue *United States Notes* just like it did from the early days of the civil war till the 1960s?
@prairiepatriot2162
@prairiepatriot2162 9 місяців тому
I agree, but they won't do that because in the current state of affairs Treasuries would plummet and interest rates would be much higher. If the Fed weren't there to buy these bonds then the federal govt., and states would actually have to practice fiscal discipline; nobody wants that.
@SineEyed
@SineEyed 9 місяців тому
Because the US gov went bankrupt to the collective entity we now call the Fed back in 1912. Then US gov entered into an agreement with the Fed which remains in effect to this day. Even if the debt was paid in full - which I'm not sure will ever be possible - US gov will be right back where it was in 1933: having zero capitol by which to conduct its affairs. At which point I'm sure the Fed would be more than happy to renew the contract with US gov to begin renting Federal Reserve Notes into circulation once more..
@raybod1775
@raybod1775 8 місяців тому
Doesn’t matter in reality. Any profits from the Fed get turned over to the Treasury so in reality the federal government borrows money from the Fed for free. Fed also does what it’s told otherwise Congress would write a new law to end the Fed.
@sunalwaysshinesonTVs
@sunalwaysshinesonTVs 9 місяців тому
The Fed: socialism for the rich, rugged individualism for the rest of us.
@hamzamahmood9565
@hamzamahmood9565 9 місяців тому
So Republicans?
@cfllfc9278
@cfllfc9278 9 місяців тому
Speaking of the feds.... How did we go from throwing tea in the harbor to armed IRS agents ?
@kqiesaw.9385
@kqiesaw.9385 9 місяців тому
BACK THE BLUE. Let the IRS do their jobs. I have nothing to hide. Nothing to fear. Are you guilty?
@KingPhoey
@KingPhoey 9 місяців тому
Taxation without representation is different than taxation with representation.
@greg4367
@greg4367 9 місяців тому
@@KingPhoey I, for one, do not feel particulary represented by any part of out government. Do you?
@cookiesmack6442
@cookiesmack6442 9 місяців тому
@@greg4367yes because you can vote
@gund89123
@gund89123 9 місяців тому
Who’s going to pay for military? Who’s going to invest in infrastructure? Who’s going to bail out states with low revenue? Most states would file for bankruptcy if they don’t receive federal funds.
@1ovejuju
@1ovejuju 9 місяців тому
Someone about to make that "Money go brrr" into a tiktok sound
@lilsabin
@lilsabin 9 місяців тому
Loool , funny part s that more than half of the people who ll watch this will still NOT UNDERSTAND
@raybod1775
@raybod1775 8 місяців тому
The Constitution says only Congress can coin money. The Federal Reserve should have been created under the Department of Treasury.
@fanniinnanetguy653
@fanniinnanetguy653 8 місяців тому
It's actually the department of treasury that coins the money
@riddell26
@riddell26 6 місяців тому
​@@fanniinnanetguy653The Treasurey has nothing more to do with it outside of filling out loan requests to the Federal Reserve which is a private bank that operates outside of rhe government for profit. That profit is the interest on every single dollar that has every entered circulation physicaly or within digital accounts.
@Adam_The_Archivist
@Adam_The_Archivist 9 місяців тому
To say that the Fed is not accountable to voters is incorrect, they are accountable by the people we elect appointing them to do what is right for the overall economy without the interference of politics. We hold our elected officials for the decisions they make, to allow experts in economics and finance do the job! Politicians are people who, I’ll be generous here since I do not want to offend anyone, not experts in anything other than fundraising and popularity contests. It is nice to see though people with humility say “Hey I don’t know really about this, let us use our responsibility as elected officials to get the right people in place to do the best job!” I know that this is a novel idea today but hey!! 🤷‍♂️
@skycaptain95
@skycaptain95 8 місяців тому
Actually it's a private bank
@Adam_The_Archivist
@Adam_The_Archivist 8 місяців тому
@@skycaptain95 The answer is both. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends. So the Public part are the governors appointed by congress whom are elected officials! Simple google search informs all!!👍
@ashfaqueali555
@ashfaqueali555 2 місяці тому
The Party has Just warming up
@PatNeedhamUSA
@PatNeedhamUSA 9 місяців тому
END THE FED /s
@javonicasapp1203
@javonicasapp1203 9 місяців тому
Brrrrrr!😂😂😂
@heliumjoker2481
@heliumjoker2481 16 днів тому
Nice video, really helped me understand. Does anyone think once we’ve reached the maximum population we can sustain on this planet we won’t need to print as much money? Or at the very least slow down at the rate money is being printed at? Might sound stupid but in the long run I actually think this system could work, only if we can guarantee there won’t be any corruption.
@harshdeepsandhu6958
@harshdeepsandhu6958 9 місяців тому
Not a good video, doesn't really answer exactly how the federal manages the money supply. Needed more details
@yomajo
@yomajo 9 місяців тому
Jakkyl island or a lie. And i hear nothing about the island...
@caesarhuang7662
@caesarhuang7662 9 місяців тому
Aka the largest bank cartel
@DippedInInk
@DippedInInk 5 місяців тому
Reading the comments wondering how y'all get your information cuz its a lot that u don't know and will never know.
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