The Federal Reserve Explained: How the Money Printer Lost $114 Billion

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!

In 2023 the Federal Reserve, the institution that controls the U.S. money supply, posted a record loss of $114.3 billion. That puzzle opens a plain-language tour of how the Fed came to exist and how it works. America's first two central banks were killed off in the 19th century, leaving a free banking era of thousands of currencies and recurring panics in 1873, 1893, and 1907. In the last of those, J.P. Morgan locked New York bankers inside his private library until they agreed to pool money and stop the runs.

From there the episode moves to the secret 1910 meeting on Jekyll Island, where Senator Nelson Aldrich and banker Paul Warburg drafted the compromise that became the Federal Reserve Act, signed by Woodrow Wilson on December 23, 1913. It then maps the three layers of the system, explains the dual mandate, and shows how interest on reserve balances works as a thermostat for the economy.

The seven members of the Board of Governors serve staggered 14 year terms designed to shield them from election pressure.
Member banks hold stock in the 12 regional Reserve Banks and earn a fixed dividend, but the shares cannot be traded and carry no control over policy. Remaining profits go to the Treasury.
After 2008, quantitative easing flooded banks with reserves, so the Fed now steers rates mainly through the interest it pays on those reserves.
Milton Friedman blamed the Fed for failing as lender of last resort in the early 1930s. In 2008 it drew the opposite charge after an $85 billion loan to AIG.
Bloomberg's lawsuit forced the Fed in 2011 to name recipients of emergency loans, and a 2021 trading scandal pushed two regional officials to resign.

Det här avsnittet är hämtat från ett öppet RSS-flöde och publiceras inte av Podme. Det kan innehålla reklam.

Avsnitt(16184)

The Art of Adult Friendship: Why Quality Matters More Than Quantity

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!In this episode of pplpod, we explore how our understanding of friendship changes as we grow old...

9 Nov 18min

Summer Explained: The Science, History, and Traditions of the Warmest Season

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!In this episode of pplpod, we explore summer, the season most closely associated with sunshine, ...

7 Nov 18min

Sir Patrick Stewart: From Shakespeare to Star Trek, the Life and Legacy of a Legend

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!In this episode of pplpod, we explore the extraordinary life of Sir Patrick Stewart, the acclaim...

7 Nov 49min

Larry David: The Genius of Social Awkwardness, Seinfeld, and Curb Your Enthusiasm

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!In this episode of pplpod, we explore the life and career of Larry David, the comedian, writer, ...

6 Nov 38min

Why Australian Shepherds Aren't From Australia

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!In this episode of pplpod, we explore the history of the Australian Shepherd, an intelligent, en...

5 Nov 45min

Labrador Retriever: From Newfoundland Fishing Dogs to Modern-Day Heroes

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!In this episode of pplpod, we explore the remarkable history of the Labrador Retriever, one of t...

4 Nov 53min

Discovering Ireland: A Journey Through History, Culture, and the Wild Atlantic Way

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!In this episode of pplpod, we explore Ireland through the philosophy of slow travel: go slower, ...

3 Nov 48min

Willie Hutch: An Overnight I'll Be There Lyric and The Mack's Soundtrack

Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!William McKinley Hutchins was born in Los Angeles in December 1944 and raised in Dallas, where h...

2 Nov 21min