[yonaguska]

Let's be clear, the federal reserve does not belong to the USA, and is not beholden to any direct representation to the people of the United States.

I'm not familiar with how the Reserve Bank of New Zealand operates, but if it's anything like our federal reserve, the country belongs to the bank, and not the other way around.

[prottog]

> the federal reserve does not belong to the USA

Come now, that's legal fiction designed to maintain the independence of the Fed. Congress created the Federal Reserve System and could remove it or twist it to whatever shape it sees fit tomorrow if it wants.

There's a good argument to be made that the Fed ran easy-money policies for too long in 2021 in order to secure Chair Powell's reappointment in early 2022; this gives you a clue as to who they are in fact beholden to, despite their nominal independence.

[matteotom]

The Fed is designed to be independent from the whims of any individual politician, but it still exists due to an act of congress, and could be changed at any time by congress passing a law and the president signing it. And if that can't/doesn't happen, it's because _congress_ doesn't represent the people of the United States.

[nobody9999]

Edit: As was pointed out, I didn't read the comment I replied to in the best light.

As such, I'm deleting the original text, since I can't delete this comment any more.

My apologies.

[hn_throwaway_99]

That is an extremely curious reading of the comment you are responding to, given that it appeared they were just arguing that if people want to change the Fed, and it doesn't happen, then that would show Congress doesn't represent the people of the US.

[coliveira]

> if that can't/doesn't happen, it's because _congress_ doesn't represent the people of the United States.

You're just saying the same thing with different words. If the Fed or the congress doesn't represent the people it doesn't make any difference to the elite class, who indeed own these two entities.

[idiotsecant]

The distinction is significant though, there mechanisms to limit the fed's power if it's necessary, even if those levers and dials are not being currently used.

[astrange]

The Fed is independent because things generally go terribly when it's not independent. The people who control fiscal policy don't do a good job of monetary policy.

If this causes worse problems (which it may but hasn't yet) things will simply be changed again.

[recuter]

Clear as custard.