Bill Cara

The Fed’s independence is under attack.

January 15, 2023

This writer’s article presents a point of view. I have my own.

I also argue against the Fed being pressured by political platforms like Climate, Inclusion, and ESG. But Fed Chair Powell bringing that up is a false flag that, in essence, is his argument for independence from the US government.

The Federal Reserve System and the central banks of Canada, the UK, and Europe are privately owned, for-profit organizations that control the money supply and interest rates in these countries. Their policies impact employment and economic growth and contraction. But they trade financial instruments against all other investors worldwide, including governments, sovereign and private funds, banks, and independent investors. Yet, they are under the control of no government or regulatory agency, which is a totally unfair advantage.

The US government should require the for-profit Fed to be organized as a commercial bank. Its authorities granted to the Fed over the years (especially in 1977) to intervene in economic matters be eliminated.

Then as a member of the private sector, any bank whose shareholders and customers believe, as I do, that our banks have no place in politics can take their money elsewhere.

Well-organized interventionists will always seek an unfair advantage over independent customers and investors. Why should we allow it?

Let free capital markets work.