Why the Federal Reserve Controls So Much of the Economy | WSJ

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The Wall Street Journal

The Wall Street Journal

Күн бұрын

The Federal Reserve is central to the U.S. economy today, and it’s controlled by just 12 people. Its monetary policies can lower inflation or even spark a recession. The central bank says it’s dedicated to achieving its goals set by Congress to maximize employment and maintain price stability, but some of its decisions like raising interest rates are not always popular with Americans.
WSJ explains how the Fed became the power it is today and why it plays such a major role in the country.
0:00 Economic policies
1:02 The Fed’s creation
2:59 The FOMC’s creation
4:11 Great Inflation
6:18 Great Recession
8:07 Covid-19
News Explainers
Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day's biggest stories into bite-size pieces to help you make sense of the news.
#Fed #Economy #WSJ

Пікірлер: 427
@DonaldMark-ne7se
@DonaldMark-ne7se 10 күн бұрын
Interesting , the stock market is currently experiencing a decline while bond yields are on the rise. However, there seems to be skepticism amongst investors regarding the Federal Reserve's plan to continue increasing interest rates until inflation is stabilized. As for myself, I find myself at a crossroads, uncertain whether to liquidate my $250,000 stock portfolio> I'm seeking advice on the best strategy to capitalize on this current bear market.
@kevinmarten
@kevinmarten 10 күн бұрын
Investing in stocks can be a wise decision, especially if you have a reliable trading system that can lead you to fruitful days of success.
@Jamessmith-12
@Jamessmith-12 10 күн бұрын
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
@JacquelinePerrira
@JacquelinePerrira 10 күн бұрын
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
@Jamessmith-12
@Jamessmith-12 10 күн бұрын
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
@JacquelinePerrira
@JacquelinePerrira 10 күн бұрын
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
@SeanTalkoff
@SeanTalkoff Ай бұрын
It's quite simple why rates are climbing with rising imports and falling exports, the FED is obviously to be blamed for banking crisis. Something will eventually break if they keep the quantitative tightening and higher interest rates. Is this really a good time to have some savings in stocks?
@DavidCovington-st2id
@DavidCovington-st2id Ай бұрын
From austerity measures to Brexit, and now with widespread bank failures, it's crucial to conduct your own research and seek advice from a licensed advisor before considering investments in these volatile markets.
@tmer831
@tmer831 Ай бұрын
Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2019, and I return at least $121k ROI, and this does not include capital gain.
@SteveDutton-v
@SteveDutton-v Ай бұрын
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
@tmer831
@tmer831 Ай бұрын
Vivian Carol Gioia is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@SteveDutton-v
@SteveDutton-v Ай бұрын
I find this informative, curiously explored Vivian Carol Gioia on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
@Patriciabanks5
@Patriciabanks5 2 ай бұрын
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
@carolpaige2
@carolpaige2 2 ай бұрын
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
@KevinClarke9
@KevinClarke9 2 ай бұрын
Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
@Johnlarry12
@Johnlarry12 2 ай бұрын
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
@KevinClarke9
@KevinClarke9 2 ай бұрын
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
@Johnlarry12
@Johnlarry12 2 ай бұрын
very much appreciated, your response suggests a person of benevolence.. just inputted her full name on my browser, and came across her site, top-notch qualifications! she seems well-qualified
@madesquire2796
@madesquire2796 Жыл бұрын
HE DID NOT SAY "MONEY PRINTER GO BRRR" 💀😂
@jessek.5899
@jessek.5899 Жыл бұрын
😂
@jesustsa1
@jesustsa1 Жыл бұрын
He didn’t! That was actual audio of a money printer 😅
@micheal_mills
@micheal_mills 2 ай бұрын
The only American who won't acknowledge this Administration's failed economic policies is Joe Biden. "Shrink-flation' is the least of our worries compared to rising rents and stagnant wages, but it is an undeniable indicator of how bad our inflation has gotten. I have $100k that i like to invest in a non-retirement account, any advice on that?
@donna_martins
@donna_martins 2 ай бұрын
I would avoid index funds, mutual funds, and specific stocks for the time being. Right now, the best option is a fixed income of five percent. Put money aside for the times when the market really starts to bounce back.
@robert-1miller
@robert-1miller 2 ай бұрын
45% of Americans do not invest in the stock market because of lack of guidance. Every year you don't invest, you are falling behind. I’m hitting numbers in the stock market I used to dream of… Going from $50k to $600k in my portfolio is surreal all thanks to insights from my financial advisor.
@ilyaveysman.
@ilyaveysman. 2 ай бұрын
It appears that your investment advisor is highly skilled. Could you please let me know if you are still in contact with this advisor and, if so, how?
@robert-1miller
@robert-1miller 2 ай бұрын
Finding financial advisors like ‘vivian jean wilhelm’ who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
@ilyaveysman.
@ilyaveysman. 2 ай бұрын
Thanks for sharing, I just liquidated some of my funds to invest in the stock market, I will need every help I can get.
@WestonScally7614
@WestonScally7614 2 ай бұрын
I am at the beginning of my "investment journey", planning to put $400K into dividend stocks so that I will be making up to 15% per year in dividends. Any advice?
@FelineAirstrip
@FelineAirstrip 2 ай бұрын
Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio.
@sting_grayl
@sting_grayl 2 ай бұрын
Consider diversifying your portfolio with a mix of stocks and stable assets. Seeking professional advice now could provide valuable insights and strategies to navigate market uncertainties and protect your investments.
@PotBellyPete69
@PotBellyPete69 2 ай бұрын
Partnering with a financial advisor has transformed my approach to investing. Their expertise and personalized guidance have not only helped me navigate complex financial markets but also optimized my portfolio to achieve my long-term goals efficiently.
@AddilynTuffin
@AddilynTuffin 2 ай бұрын
This is definitely considerable! think you could suggest any professional/advisors I can connect with? I'm in dire need of proper portfolio allocation
@PotBellyPete69
@PotBellyPete69 2 ай бұрын
*Jennifer Leigh Hickman* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets.
@LuisLascanoValarezo
@LuisLascanoValarezo Жыл бұрын
Printing money for artificial inflation is basically taxing people that have cash savings
@badluck5647
@badluck5647 Жыл бұрын
It has also been a great business opportunity for businesses to earn more profit. They justify price increases by pointing to inflation while the wage increase becomes inelastic by comparison.
@robertbruhcuh3634
@robertbruhcuh3634 10 ай бұрын
@@badluck5647rich people getting rich broke people getting dug deeper
@DippedInInk
@DippedInInk 8 ай бұрын
Is it?
@programking655
@programking655 7 ай бұрын
Except that nominal interest rates adjust upwards, so no, it’s not taxing anything
@babybison2881
@babybison2881 6 ай бұрын
​@@programking655 no, he's right. It's free money for the Fed. It's not backed by anything. They artificially inflate or deflate interest rates. All in the name of making money off the average American. It's a tax no matter how you look at it.
@lakeguy65616
@lakeguy65616 Жыл бұрын
The Fed's response to a crisis is often the catalyst for a future crisis that requires Fed intervention. The process repeats ad infinitum.
@greg4367
@greg4367 Жыл бұрын
Ad infinitum, ad nauseam, never EVER learning from their mistakes.
@kaig9707
@kaig9707 Жыл бұрын
Ad infinitum… until the currency collapses.
@Acteaon
@Acteaon Жыл бұрын
And yet we don’t reconsider something else
@teEnTYoNG
@teEnTYoNG Жыл бұрын
​@@Acteaonlaissez-faire free banking
@_ata_3
@_ata_3 Жыл бұрын
Sure lakeguy65616
@luisespinoza2929
@luisespinoza2929 Жыл бұрын
The moment she broke script just to make the brrr sound killed me 😂
@anujmeena
@anujmeena Жыл бұрын
I was hoping for more detailed analysis
@mmorphy4258
@mmorphy4258 5 ай бұрын
go to Edward G Griffin for that
@denovo62
@denovo62 4 ай бұрын
In 9 minutes? This was a total propaganda piece. Wall Street and the Fed are two sides of the same coin and with this being a Wall Street Journal piece go figure. The presidents and Congress are beholden to the Fed not the other way around. The Fed is the real mafia and the CIA is their intelligence arm. At it's establishment in 1914 on the eve of WWI, you could say that was the official coup of the United States of America. Both world wars were their doing. And not only the oil of the middle east was their goal but esp the chemical industry of Germany that brought us into the modern petrochemical world post WWII. Plus the extinguishing of socialism in Russia and Germany that gave fire to our labor revolts in the early twentieth century. And all of this has been accomplished going forward with the establishment of the Breton Woods financial instruments like the IMF and World Bank that allowed the U.S. to convert all the colonies of Britain, France, etc into financial colonies and the takeover of their industries and raw resources thru debt ridden structural adjustment loans and CIA coups. All Wars are Banker's Wars is a short half hour doc that gives some history here. I think the other commenter above suggested another. Predator Nation is an essential book to check out, by the author/director of the best documentary out there on the subprime mortgage crisis but who also details the fifty year takeover of our economy via the financial crises that have littered every decade since Nixon took us off the gold standard and the Fed began it's rise again following the New Deal and Glass Steagall legislation during the great depression that separated wall street from banking. The savings and loan crises of the 80s, the mergers and acquisition and hostile takeover phase that followed, and all the creative, ie manipulative financial instruments that each crisis gave them more money and subsequent power to destroy the regulatory laws that kept them in check, leading to the dissolving of glass steagall end of 1990s and onward onto the subprime mortgage crisis of 2008. Frank Dodd was essentially written by them and had allowed for the rise of Black Rock and Vanguard and other private equity firms and all the qualitative easing that's ensued thus which is really about privatizing not only our economy but the rest of the world's too via all these wars which are being paid for with printed money. We don't have a real economy anymore. Wars aren't sustainable, the sickness industry isn't sustainable and most factories have been farmed out to other countries to be able to exploit their cheap labor and lax pollution laws, etc, that their ability to bring us under total control in order to bring about their next grand war will be as easy as flicking the first domino piece and it all falling into place for them. They hate riots and protests when they orchestrate these ugly wars and takeovers so they're doing everything possible to thwart every natural movement before it has a chance to turn into a real flame of an uproar.
@libertycoffeehouse3944
@libertycoffeehouse3944 Ай бұрын
It is a criminal organization. It murders people. Get it!
@nevoobrazimiy
@nevoobrazimiy Жыл бұрын
My God, I so love WSJ approach in these shorts!
@philthy941
@philthy941 Жыл бұрын
End the Fed.
@EndDims
@EndDims 16 күн бұрын
I agree, however, the Fed is just one part of several bad actors that have taken us to this point. Along with Treasury, Congress, and the Executive Branch.
@user-oo5qm5qz3b
@user-oo5qm5qz3b 9 күн бұрын
I appreciate the time and effort you put into creating your videos. They are very informative and easy to follow.
@nicolasbenson009
@nicolasbenson009 10 ай бұрын
We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.
@davidgarcia4576
@davidgarcia4576 6 ай бұрын
Hopefullyl youre holding some BTC
@laportafrank
@laportafrank 11 ай бұрын
Taking early notes from Warren as to the importance of sound asset diversification and risk management It can’t be overstated. I’ve been trying to grow my portfolio of $300K for sometime now, I would greatly appreciate any other suggestions.
@rickertcoles
@rickertcoles 11 ай бұрын
Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals
@GeorgeNN
@GeorgeNN 11 ай бұрын
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
@flemmingbrooke
@flemmingbrooke 11 ай бұрын
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
@GeorgeNN
@GeorgeNN 11 ай бұрын
There are a lot of independent advisors you might look into. But i work with Nicole Desiree Simon , and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her
@flemmingbrooke
@flemmingbrooke 11 ай бұрын
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
@chrish3305
@chrish3305 3 ай бұрын
Great overview, thanks
@exposesblu
@exposesblu 12 күн бұрын
Very informative and simple, thanks for video
@nathanaeltekalign2508
@nathanaeltekalign2508 6 ай бұрын
The Federal Reserve confuses monetary inflation with non-monetary inflation. Monetary inflation is caused by an increase in the money supply. The inflation of the 1970s was monetary inflation because the Nixon Shock happened during 1971. The inflation that happened during 2022. Non-monetary inflation was caused by supply chain issues that would have gone away even if interest rates were never raised in the first place. Therefore, interest rate increases were inappropriate during 2022, even if they appropriate during 1978. Also, the Federal Reserve should focus on the rate that the money supply increase rather than the inflation rate.
@EndDims
@EndDims 16 күн бұрын
The rate increases should have happened in the late 90s. The rates should have been high and stayed high. Instead we had politicians who wanted to pursue bad policies that cost us dearly, and they kept rates low to boil the frog.
@weirdshibainu
@weirdshibainu Жыл бұрын
"The Fed is just this poorly understood and really important institution in our country"....and the Fed likes it like that.
@benjaminlehman3221
@benjaminlehman3221 Жыл бұрын
Part of economics is that there are recessions and troughs. If the fed never lets things fail and prices go down then inflation will continue.
@eco-enjoyer
@eco-enjoyer Жыл бұрын
No, that is part of the broken system of capitalism. The Fed is just a puppet attempting to 'control' inflation and interest rates, while realistically, these things are not controllable.
@I-Know-Best
@I-Know-Best Жыл бұрын
What are you talking about? "If the fed never lets things fail and prices go down then inflation will continue" ??? Thats called DEFLATION
@josephlynch7655
@josephlynch7655 Жыл бұрын
Deflation is bad actually
@tomlxyz
@tomlxyz Жыл бұрын
Recessions aren't necessary, they're just the product of the current system
@weird-guy
@weird-guy Жыл бұрын
You want deflation? Every country has a target of 2% inflation , now that inflation is coming down most prices will not come down, governments were to slow imo to increase interest and stop “the bleeding”. My country right now has inflation of 3,4%, the only prices that come down was petrol/diesel, essential products because the government changed vat from 6% to 0%,electricity I think is predicted to come down but nothing more, mortages on loans of 150K€ increased 200€,we have a housing crisis because we need immigration but there not enough houses do to the previous financial crisis, my government right now has more money than ever before but the tax burden is the highest it ever been, but people are worst off
@FenellaMarshall
@FenellaMarshall Жыл бұрын
The points in the video I very much agree with my advisor, in meetings with him I often hear class him say these. Even he is often on the news and mentioned many times in some interviews. People can also raise these issues with him. By his name. Dan Price CFA.
@NguyenThanh-in7gf
@NguyenThanh-in7gf Жыл бұрын
How to find him.
@FenellaMarshall
@FenellaMarshall Жыл бұрын
@@NguyenThanh-in7gf If you need a broker recommendation, I recommend Dan Price C FA.
@FenellaMarshall
@FenellaMarshall Жыл бұрын
@@NguyenThanh-in7gf You can find him online and I have learned a lot from him.
@07gang80
@07gang80 Жыл бұрын
I had the pleasure of meeting the advisor, Mr. Dan Price. His expertise as an investment mentor is outstanding. With his guidance, I was able to successfully achieve my investment goals. I truly appreciate his help and support! I look forward to continuing to work with him for more investment success!
@marisahokefazi2949
@marisahokefazi2949 Жыл бұрын
In the 1980s and 1990s one could subscribe to newsletters from each fed bank and would be sent these wonderful informative financially Educated news letters. Then for some reason they decided to stop. That was a terrible idea because it really hurt financial literacy. The fetch of start making those news letters available again.
@riddell26
@riddell26 9 ай бұрын
You literaly paid for propaganda, and got upset that they stopped sending propaganda
@albertbobrov8599
@albertbobrov8599 3 күн бұрын
Very clearly and accessiblely written, even for beginners.
@haythamal-dokanji9547
@haythamal-dokanji9547 11 ай бұрын
Informative and stylish presentation. Keep it up WSJ.
@Brandon-xp1ob
@Brandon-xp1ob 8 ай бұрын
It's not informative, it's propaganda
@eddieloujones2673
@eddieloujones2673 9 ай бұрын
Printing money is like reverse Robin Hood. Steal from the poor to give to the rich.
@davisoaresalves5179
@davisoaresalves5179 Жыл бұрын
The most powerful institution in the world.
@vincentstewart1843
@vincentstewart1843 5 ай бұрын
Should I give up on Trade? What should I do? How may I do better? What I'm I doing incorrectly?
@vincentstewart1843
@vincentstewart1843 5 ай бұрын
here is my problem I have been making losses trying to make trade. I thought to trade demo is just like the real..can anyone help me out or at least tell me on what to do.
@maureen...
@maureen... 5 ай бұрын
I always advice new members to have an orientation on how it works before getting involved. Trade offers more benefits than just holding.
@maureen...
@maureen... 5 ай бұрын
Kate Floretta Face book
@Mayor1248
@Mayor1248 5 ай бұрын
having a mentor is also very important when it comes to Trade, with out that, it can be very frustrating.
@Mayor1248
@Mayor1248 5 ай бұрын
you must have these things in mind 1. Have a long term mindset. 2. Be willing to take *risk*. 3. Be careful, if you're not spending to earn back, then stop spending. 4. Never claim to know - Ask questions and it's best you work with an assistant.
@Howaboutyoublow
@Howaboutyoublow Жыл бұрын
“Business and politicians got together and decided that relying on wealthy people to do the right thing was not the best option… so we created the fed” translates to “Bankers realized it was too expensive to pay for their mistakes, so they came up with a way to steal your money indirectly instead”
@19MAD95
@19MAD95 Жыл бұрын
The perfect comment
@bolasblancas420
@bolasblancas420 11 ай бұрын
Laisser-faire no more.
@rhymerez
@rhymerez 10 ай бұрын
got together should be replaced with took a train in secret to jekyll island to craft it, then passed the legislation also in secret when most people were enjoying christmas and new years.
@libyann9385
@libyann9385 9 ай бұрын
Yes
@DippedInInk
@DippedInInk 8 ай бұрын
U actually believe that?
@DevonLadd
@DevonLadd 3 ай бұрын
Very nice
@LhotseMS
@LhotseMS 6 ай бұрын
I love how they just glance over “but bank don’t keep that much money” - maybe the fractional reserve system is the issue?
@f.anvary7783
@f.anvary7783 Жыл бұрын
I can explain it in 9 seconds! Bunch of criminals who never get caught!!
@sureshnishtala2887
@sureshnishtala2887 Жыл бұрын
Very well Explained about the origins of The Federal Reserve. It started with a crises and learning at each and every crises.
@gennadiyterentev6663
@gennadiyterentev6663 7 күн бұрын
This is my favourite youtube channel thank you for the teacing. I like you and love you In this strategy, we close the trade no matter what after the 1min candle ends?
@_ata_3
@_ata_3 Жыл бұрын
How are politics and economic policies different?
@omercakmak3099
@omercakmak3099 11 ай бұрын
what is the model of the car in 6:22 ?
@juannajera881
@juannajera881 2 ай бұрын
The 350 grocery receipts got me here 😂😂
@mariavictoriacaringal6795
@mariavictoriacaringal6795 5 ай бұрын
How can I exchange my Federal Reserve Notes 1934-A 1000$ ? Where do I go to have it exhanged for the current rate? Thank you.
@michaelyoon9355
@michaelyoon9355 8 ай бұрын
Printing money recklessly without having an answer for declining real income growth for the vast majority of people is irresponsible.
@vinesthemonkey
@vinesthemonkey 4 ай бұрын
the issue at the start was FRACTIONAL RESERVE BANKING
@pwp8737
@pwp8737 Жыл бұрын
Hmm...so oligarchs decided to socialize the risks of banking and privatize the profits. Aint capitalism grand?
@teashea1
@teashea1 Жыл бұрын
very well done. effective to minimize the number of experts instead of having many. excellent.
@chaiszcash4206
@chaiszcash4206 5 ай бұрын
This video was BOMB 💣 boom lol
@andis9076
@andis9076 Жыл бұрын
Not just US, it's the WHOLE WORLD !
@cbbcbb6803
@cbbcbb6803 Жыл бұрын
It seems to me that the Federal Reserve actually makes (prints) money. Regular people get money by, hopefully, "earning" it. Keep in mind that economy and the financial are not the same thing as the people. The economy can be great and, at the same time, people may not be doing well at all.
@xgevbd3464
@xgevbd3464 Ай бұрын
you the best,i dont know how to thank u.u r a blessing,may god increase u.yr strategies are phenominal
@Pyrrhic.
@Pyrrhic. Жыл бұрын
Fun fact, when surplus trading nations like China, Saudi Arabia, and Japan invest their USD reserves in treasuries instead of converting it to their own currency, that pushes down long term or shorter interest rates, depending what maturity they buy. Feds can’t control that.
@tomlxyz
@tomlxyz Жыл бұрын
Yes, that's mainly what keeps the US afloat. Import wares, export investments and USD debt
@Pyrrhic.
@Pyrrhic. Жыл бұрын
@@tomlxyz it’s also to keep their own currency devalued, making their exports more attractive. Also US financial markets is arguable the best in the world to invest their profits.
@damnguen1726
@damnguen1726 11 ай бұрын
@@Pyrrhic.maybe their currencies are so devaluated that even they dont want to hold them :v
@pinkietoes
@pinkietoes 10 ай бұрын
Your claim makes no sense since Tbills are short-term government debt instruments without any interest rate, but instead purchased at a discount.
@riddell26
@riddell26 9 ай бұрын
The Feds dont even control the Federal Reserve
@1ovejuju
@1ovejuju Жыл бұрын
Someone about to make that "Money go brrr" into a tiktok sound
@prairiepatriot2162
@prairiepatriot2162 Жыл бұрын
At some point, you have to take the training wheels off and let bad economic (fiscal) policy run its course; if people had to suffer the consequences of bad election decisions, they might vote smarter. Eventually if you keep inflating a balloon (money supply) it will pop. Deficits and debt cannot be increased indefinitely without consequence. Which is more painful, recessions or a currency collapse; anyone who's lived under socialism can tell you that it is the latter.
@microsoftpain
@microsoftpain Жыл бұрын
finally, someone with a brain. 💀
@EndDims
@EndDims 16 күн бұрын
Well, the people who didn't die under socialism, anyway.
@loukramer152
@loukramer152 Жыл бұрын
The fed may have taken the punch bowl away, but the WSJ reporting drank the Koolaid anyway!
@alberthoffman5297
@alberthoffman5297 8 ай бұрын
I think this comment section needs to attend a mandatory economics class
@Danny-fs1hk
@Danny-fs1hk 11 ай бұрын
This was an excellent segment. They explained the Fed in simple terms.
@Ra21112
@Ra21112 Ай бұрын
Good
@rustyschackleford5800
@rustyschackleford5800 Жыл бұрын
The FED doesn't control all interest rates. They can affect short term rates and manipulate the bond market, but they don't simply "raise rates." The capital markets are bigger than the FED.
@cbatchler
@cbatchler Жыл бұрын
I get what you are saying but 90% of HELOC, commercial lines, and loans are tied to the prime rate which is fed funds +3, so when the fed changes that rate all those loans follow. That's a huge influence and everything else would be priced and correlated to that. Good old supply and demand.
@Adam_The_Archivist
@Adam_The_Archivist Жыл бұрын
@@cbatchlerno actually most mortgages, corporate debt and to a lesser extent home mortgages are tied to the 10 yr Treasury rate. You are correct on the +3%. If you look at the current 10 year and add 3% you are at the national average of roughly 7% give or take..
@cbatchler
@cbatchler Жыл бұрын
@@Adam_The_Archivist Not really, what you are saying is the correlation or spread of two different loan products. If that were true then why do I have a 3.25% mortgage in Oct of 2016 when the 10-year was at 1.7%? That would suggest my mortgage should be 4.7% and not 3.25%, Right? Think of it this way, on a highway the speed limit is 55 MPH but most cars are going 60, some going 65-70 and some 75 MPH. Those cars are willing to take the risk of going faster just as investors are willing to pay different rates for different products and as speed limits change so does their speed. So the loans aren't tied to the 10-year Treasury, that is just a frame of reference to compare other loan rates too. I have a commercial line of credit with Key Bank and it says the rate is 6 points plus the prime rate, it doesn't say anything about the 10-year US Treasury in its pricing model, nor have I ever seen a loan price itself to the 10 year. Hence the Fed sets the line and every one prices and moves around that line and then supply and demand sets in just like a speed limit.
@ISpitHotFiyaa
@ISpitHotFiyaa Жыл бұрын
Historically that's true. But at this point their balance sheet is so huge that they pretty much do control the bond market. If they unloaded all their mortgage backed securities at once then long term rates would spike. Or they could drop rates to 2% by printing money and buying mortgage backed securities like they did in 2020. They don't operate according to the economics textbooks anymore. Things changed in 2008.
@tomlxyz
@tomlxyz Жыл бұрын
They can affect much more if they wanted
@usasylee3919
@usasylee3919 Жыл бұрын
Bernanke planted a time bomb. You can't stop it :(
@Pyrrhic.
@Pyrrhic. Жыл бұрын
It started with Greenspan to be honest
@raybod1775
@raybod1775 11 ай бұрын
Nobody created as much money as the current Fed.
@johnnybc1520
@johnnybc1520 9 күн бұрын
We are doomed
@masterstacks2030
@masterstacks2030 Жыл бұрын
The 70s inflation was from the depeg from gold
@Hokua888
@Hokua888 Жыл бұрын
Yea.
@JesusGarcia-nc1ld
@JesusGarcia-nc1ld 2 ай бұрын
“Money printer go brrrr!” 😂😂
@zayseeu8337
@zayseeu8337 11 ай бұрын
how can i work there
@BUBBLETEABOY
@BUBBLETEABOY Жыл бұрын
Money Machine goes brrrr
@victorco.6308
@victorco.6308 Жыл бұрын
responsible and necessary decisions are not always popular
@boitumelosekgothe
@boitumelosekgothe Жыл бұрын
@Wendoverproductions I think you can do a better job producing a video on this topic of central banks.
@JamesFarming
@JamesFarming 11 ай бұрын
Why did the WSJ stop making videos?
@Denita-y8i
@Denita-y8i 10 күн бұрын
Thank's you for another brilliant binary strategy i already having a good profit applying all your strategies, all the videos you have uploaded very educational to all traders around the world
@LorrineGefroh
@LorrineGefroh Ай бұрын
I am interested trading business. But how can beginning. So please help me.
@claudiobv01
@claudiobv01 11 ай бұрын
Why the fed controls so much the economy?? 😂😂 that’s a good one!
@jwong478.
@jwong478. Жыл бұрын
That fiat money system😅
@zacharyparis
@zacharyparis Жыл бұрын
It’s built to fail. A debt based system is not sustainable.
@markhirstwood4190
@markhirstwood4190 Жыл бұрын
Timiraos says 'imporduhn' (important).
@lakeguy65616
@lakeguy65616 Жыл бұрын
The problem is since 1977, the Fed is tasked with a dual mandate; full employment & price stability. Full employment creates inflation and low inflation requires some level of unemployment. Return the Fed to a single task of price stability. I'd go one step further, Iimit the Fed's ability to grow the money supply to growth in GDP. The Fed's policies created today's inflation.
@greg4367
@greg4367 Жыл бұрын
That isn't the problem, it's the cover story.
@gund89123
@gund89123 Жыл бұрын
US has not seen high inflation in decades. Inflation we see today is most because of COVID disruptions, federal government spending on PPP loans & writing checks to people during COVID, & supply chain disruptions.
@lakeguy65616
@lakeguy65616 Жыл бұрын
@@gund89123 Inflation is a monetary phenomenon where too much money is chasing too few goods and services. And its almost always a consequence of government action.
@teEnTYoNG
@teEnTYoNG Жыл бұрын
Even better would be to get the government out of the system. Under free banking in the us we had near zero inflation and laissez-faire banking is much more stable. Central planning is terrible as the fed has shown.
@lakeguy65616
@lakeguy65616 Жыл бұрын
@@teEnTYoNG either you didn't watch or didn't understand the video
@sunalwaysshinesonTVs
@sunalwaysshinesonTVs Жыл бұрын
Wait? What's there to explain? Regan told me running the American economy is like running a household budget -easy peesy.
@javonicasapp1203
@javonicasapp1203 Жыл бұрын
Brrrrrr!😂😂😂
@remsee1608
@remsee1608 Жыл бұрын
Its a way for them to steal your money
@howeichin4103
@howeichin4103 Ай бұрын
interesting finance knowledge
@leftifornian2066
@leftifornian2066 Ай бұрын
The red shields 🛡️ control the fed
@Lazaven
@Lazaven 5 ай бұрын
So we’re not gonna talk about Jeckle island?
@hans6304
@hans6304 Жыл бұрын
Very rich institution.
@germanpolyakov8779
@germanpolyakov8779 Ай бұрын
Это было реально горячо)) почти слив, но ты вытащил) красава, играешь по кайфу!)
@jakemcgrath9708
@jakemcgrath9708 Жыл бұрын
“Tell him that we’re gonna lock him up in the federal reserve!”
@nonyabuiz2023
@nonyabuiz2023 5 ай бұрын
Why is Interest paid on fiat currency?
@TonyFarley-gi2cv
@TonyFarley-gi2cv 10 ай бұрын
So federal I see out there there's some young children that have graduated high school and college but as a young child they're still not allowed to work and most of these colleges well I'm not sure most of them but some of them are book type now as a young child work experience comes in mind so do you think it'd be a cool idea to send some of them to like MIT or some of these engineer bill structures and because they're younger and child means our stuff can't be gone through you can theoretical stuff and put it in with some of them to learn into that or seeing what they bring to the table by other ones that want to participate with them as a kid
@masterstacks2030
@masterstacks2030 Жыл бұрын
END THE FED
@mariyasergeeva567
@mariyasergeeva567 25 күн бұрын
Again and again you keep turning beginners into profitable traders best binary mentor thank you...
@AnthonyJohnson-gr3xj
@AnthonyJohnson-gr3xj Жыл бұрын
Shout out STL
@fieldboy7507
@fieldboy7507 3 ай бұрын
THE CRAZZY PART IS THAT WE ARE LIVING IN THE HYPER INFLATION N ITS ONLY GONNA GET MORE WORSE FROM NOW ON
@vaughnbay
@vaughnbay Жыл бұрын
There are massive winners and massive losers for every FED action. Interesting how the FED never talks about the losers. What a biased video.
@kbj9656
@kbj9656 Ай бұрын
He’s still dependent on the data like he always said chairman cut the rates
@ClassicNed
@ClassicNed 11 ай бұрын
But here’s the problem! The central bank’s in Europe, have played a dominant role on members who chair the Federal Reserve.
@davidwalsh9807
@davidwalsh9807 Жыл бұрын
FEDNOW ramping up
@mckcpaul1
@mckcpaul1 10 ай бұрын
This video shows you that the FED after 113 years from its inception still has barely a clue of what it is actually doing, still throwing things and solutions against the wall to see if they stick, how much longer are people going to put up with dangerous cartel!
@Brandon-xp1ob
@Brandon-xp1ob 8 ай бұрын
On point. Only buerocrats can do a job so terribly for decades and still exist. I hear the central banks in Argentina and Lebanon are doing well though😂🤦
@daviddavis9727
@daviddavis9727 Ай бұрын
Im waiting for a subsidy loan 😊
@Selimismail-oc3rb
@Selimismail-oc3rb 2 ай бұрын
Haan yaar suno 4ra pe special promotions chalte rehte hain, festival time pe toh maza hi aa jata hai 🎉🔥
@user-lf7uw7kv9x
@user-lf7uw7kv9x 2 ай бұрын
Your trading strategies are very effective. Thank you for sharing them with us and helping us achieve financial freedom.
@lilsabin
@lilsabin Жыл бұрын
Loool , funny part s that more than half of the people who ll watch this will still NOT UNDERSTAND
@ranickhaan
@ranickhaan 4 ай бұрын
This only confirms government is never the answer.
@microsoftpain
@microsoftpain Жыл бұрын
END THE FED!
@harrysumardi7536
@harrysumardi7536 Жыл бұрын
Printing money is the Fed Ninja way on every crisis
@69pepe420
@69pepe420 Жыл бұрын
BITCOIN
@daviddavis9727
@daviddavis9727 Ай бұрын
I want my credit revalri 😊
@michaelglendinning1738
@michaelglendinning1738 10 ай бұрын
Money that is real can be not real, and money that is not real can be real. That pisses me off!!!!!!!
@caesarhuang7662
@caesarhuang7662 Жыл бұрын
Aka the largest bank cartel
@ashfaqueali555
@ashfaqueali555 5 ай бұрын
The Party has Just warming up
@PatNeedhamUSA
@PatNeedhamUSA Жыл бұрын
END THE FED /s
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