4G Guangyuan: The founding philosophy of the United States is to disperse power and check and balance each other to avoid tyranny and corruption caused by the concentration of power. The founding fathers made the Federal Reserve not controlled by the government based on the concept of separation of powers and checks and balances. The central bank operates independently and the Federal Reserve is not controlled by the government.
Although the members of the Federal Reserve are appointed by the president, they need the consent of the Senate, and all members are full-time staff and are not allowed to hold concurrent positions or stocks in any financial institution.
The core management body of the Federal Reserve is the Federal Reserve Board, whose seven members are all appointed by the president for a term of 14 years and are not eligible for re-election; the Federal Reserve Chairman and Vice Chairman serve a term of four years and may be re-elected during their term as members.
Advantages of the Federal Reserve being outside of government control:
(1) Policy independence, not affected by short-term politics
(2) The Federal Reserve can effectively regulate economic overheating or overcooling and maintain long-term economic stability.
(3) The independent formulation of monetary policy makes it more fair and transparent and avoids political interference.
(4) Members of the Federal Reserve are all economic experts, and their decision-making is more professional and efficient.
(5) The independence of the Federal Reserve enables it to play an important role in the global economy. The Federal Reserve is one of the most important central banks in the world. Adjustments to its dollar policy and interest rates affect global capital flows and international trade, thus having a profound impact on the global economy.
The Federal Reserve is neither completely independent nor completely private. The Federal Reserve's executive committee members are nominated by the president and appointed after approval by Congress, so they have political attributes. The Federal Reserve Chairman is nominated by the president and approved by Congress, and is also subject to certain political influences.
The Federal Reserve is funded mainly by government grants, and the U.S. government borrows money to maintain its operations by issuing Treasury bonds to the Federal Reserve. The Federal Reserve's decision-making and policy-making are also influenced to some extent by some financial giants.
The Federal Reserve was founded in 1913, and its four core shareholders are all Jewish families: the Warburg family, the Rothschild family, the Schiff family, and the Lazard family. So it is not groundless that some people believe that the US economy and politics are controlled by Jews.
