Jerome Powell has said that Congress and the private sector, not the Fed, are responsible for ‘the things that will really matter for future generations,' per FORTUNE
When people were going around going "What is the fed going to do to help address social justice?" I'm like "What interest rate on interbank deposits would best serve the black community?" And the obvious answer is that it's a stupid question.
The fed's sole purpose is to act as a lender of last resort for banking institutions, and to help try to maintain maximum employment and low inflation. Within that mandate, their job has nothing to do with anything that really matters.
Looser monetary policy may lower unemployment, but it also causes money to trickle to the top. Tighter monetary policy may raise unemployment, but it also reduces the ability of the rich to use leverage to increase their share of the pie.
Tighter reserve requirements mean banks are less likely to go out of business due to shocks, looser reserve requirements man that banks are more likely to issue new loans to borderline individuals.
The fed's sole purpose is to act as a lender of last resort for banking institutions, and to help try to maintain maximum employment and low inflation. Within that mandate, their job has nothing to do with anything that really matters.
Looser monetary policy may lower unemployment, but it also causes money to trickle to the top. Tighter monetary policy may raise unemployment, but it also reduces the ability of the rich to use leverage to increase their share of the pie.
Tighter reserve requirements mean banks are less likely to go out of business due to shocks, looser reserve requirements man that banks are more likely to issue new loans to borderline individuals.
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