Tuesday, January 26, 2021

Tag: Instead of Draining the Swamp

Instead of Draining the Swamp, the Swamp Is Draining the U.S. Treasury via the New York Fed

by Pam Martens and Russ Martens, Wall St On Parade:

The Federal Reserve’s role under the U.S. law that governs it (the Federal Reserve Act) is to function as the nation’s central bank and lender of last resort to deposit-taking commercial banks in a crisis and to set monetary policy to achieve the dual objectives of stable prices (preventing deflation as well as runaway inflation) while maximizing employment.

But since December 2007, the Federal Reserve has simply written its own playbook, independent of the law that governs it. The Fed has decided to outsource to one of its 12 regional Federal Reserve banks, the New York Fed, the role of propping up the swamp on Wall Street.