The Federal Reserve has been a major point of contention in recent political discussions. Some think it is necessary to save the country from bank runs, bubbles and corporate failure. Others think it is a necessary evil, but prone to corruption and need of overhaul. Others think the Fed needs to be dismantled because it does no good: it is the source of Bubbles and the overall loss of monetary value over time. Regardless of what you think about this issue, the Fed is notoriously unwilling to disclose its actions and that has many on both sides of the political aisle calling for accountability.
Source: Best Accounting Schools
Complaints Against The Fed
- Caters to banks and financial insiders
- Overly secretive
- Should be fully audited
- Encourages bad, risky investments by softening the blow of bad decisions
- Causes economic bubbles
- Makes the pain of recessions worse by covering up and exasperating problems that the market would correct on its own
- Systematically allows the value of money to decrease as a result of inflation
- For 100 years before the Fed, money retained or gained value over time
- Discourages people from saving for the future
- Doesn’t hold government spending in check
Tell us what you think. Is the Fed looking out for the fat cats while ignoring the little guys? Should the Fed be more transparent? Should they be audited? Should the Fed exist at all?