Created in 1913 with the enactment of the Federal Reserve Act, the Federal Reserve (the Fed) is the central banking system of the U.S. The Fed functions as the bank of the U.S. government, overseeing the nation’s financial institutions. As the central bank, the Fed safeguards and manages the U.S. economy and its money supply with its economic and monetary policies, which makes it a very powerful global player. Ben Bernanke is the current chairman of the Federal Reserve.
A stock market crash could usher in a U.S. economic collapse, rewriting the rule book for the entire monetary system.At least, that’s the opinion of former Congressman Ron Paul. During an interview on CNBC last week, the libertarian commentator predicted a huge crash in the financial system, saying the stock market’s “day of. Read More
Consumer spending recorded its largest increase in nearly six years in May, indicating that the U.S. economy is picking up momentum.Personal spending climbed a seasonally-adjusted 0.9% from a month earlier. The reading measures what consumers spend on everything from cars to clothing. Consumer spending accounts for more than two-thirds. Read More
The Federal Reserve provides projections on U.S. gross domestic product (GDP) four times each year; in March, June, September, and December.Just a few days ago, the Fed released its June projections. The Fed expects the U.S. economy to grow between 1.8% and two percent this year. (Source: Federal Reserve, last accessed June 17, 2015.). Read More
While mainstream economists are championing the Federal Reserve’s handling of the economy, billionaire investor Carl Icahn is warning that the stock market is primed for a crash.Writing in response to Donald Trump’s cabinet offer, he aired his views on the state of the economy and the Federal Reserve.Mr. Icahn addressed the Federal. Read More
The value of the U.S. dollar is anchored in trust. As a fiat currency, the U.S. dollar isn’t linked to any physical reserves, like gold or silver; it’s just paper. For the U.S. dollar to be worth anything, it has to be backed by an economy people have faith in. Otherwise, the U.S. dollar would collapse.Regardless of its intentions, the. Read More