liberated syndication

Trading Justice

TJ 137: Central Banks with Jeff Crystal

Trading Justice
Released on Mar 2, 2016

podcast What is a central bank? Originally, they were created to provide the nation with a safer, more flexible, and more stable monetary and financial system. Do it still do that, though? According to the FOMC's website, its duties now include: The bank still does determine interest rate and monetary policy for the US (and other countries for their respective central banks), but the US banks also have an extra wrinkle as compared to other countries. While a majority of the Fed is staffed by presidential appointees (seven seats, in fact), there are indeed five seats that belong to private banks as part of the agreement with these banks to purchase shares in the Federal Reserve system. These shares can't be sold, but they do pay out interest to their holders to the tune of about 2 Billion a year (with the other roughly 88 Billion going directly into the US Treasury). How does that work, exactly? Why was the FOMC created this way? Join us for the latest Trading Justice podcast wherein Matt and guest Jeff Crystal talk central bank history and policy. applogoapple logo_0034_stitcher tunein-logo