Submitted by Tore Toivicco

Who controls Federal reserve?

http://www.youtube.com/watch?v=NzLIz27GqWs

Most important question in US history?

http://www.usagold.com/federalreserve.html

Federal reserve controls US income/ finance?

http://library.thinkquest.org/03oct/00921/governmenttaxes.htm

Is Ron Paul talking about this?

-Tore Toivicco

Source: Briefing.com

Fed Brief - In depth analysis of Federal Reserve Policy.

Updated: 20-Feb-08 14:43 ET

January Minutes and Conference Calls

The January 30 FOMC minutes also contained the details of the conference call that preceded the January 22 intermeeting 75 bp ease. The strong 1.25% ease over those nine days came as the committee saw ’significant’ risks of a downturn and ‘disappointing’ inflation data. The committee noted that financial markets remained under considerable stress, that credit had tightened further for some businesses and households, and that recent information pointed to a deepening of the housing contraction as well as to some softening in labor markets. The Committee again viewed it as appropriate to indicate that it expected inflation to moderate in coming quarters but also to emphasize that it would be necessary to monitor inflation developments carefully.

On January 21, 2008, the Committee met by conference call. Incoming information since the conference call on January 9 had reinforced the view that the outlook for economic activity was weakening. Among other developments, strains in some financial markets had intensified, as it appeared that investors were becoming increasingly concerned about the economic outlook and the downside risks to activity. Participants discussed the possibility that these developments could lead to an excessive pull-back in credit availability and in investment. All members judged that a substantial easing in policy in the near term was appropriate to foster moderate economic growth and reduce the downside risks to economic activity. Most members judged that an immediate reduction in the federal funds rate was called for to begin aligning the real policy rate with a weakening economic situation. An immediate policy action could be misinterpreted as directed at recent declines in stock prices, rather than the broader economic outlook.

The revised 2008 Fed projections lowered real GDP growth to 1.3%-2% (from 1.8%-2.5%), raised expectations for the unemployment rate to 5.2%-5.3% (from 4.8%-4.9%) and raised the core PCE inflation range to 2%-2.2% (from 1.7%-1.9%). The new growth forecasts are considerably lower than November given the downside risks. The Fed expects growth to reaccelerate in 2009 and 2010 as core inflation moderates over the next two years. Some on the committee foresaw possible ‘rapid reversal’ of rate cuts given the current need for ‘relatively low’ interest rates.

The January Fed Statement noted that “downside risks to growth remain” — fueling expectations for more of the same type of easing at the March 18 meeting.

The Fed presidents stepped in with another dissent after official mixed opinion at the last three policy ease decisions. Today it was Dallas Fed president Fisher who dissented in favor of no ease at all. St. Louis Fed president Poole dissented last week in favor of waiting for the scheduled meeting. Boston’s Rosengren dissented in December preferring a stronger 50 bp ease and Kansas City’s Hoenig favored steady policy rather than an ease in October. While Bernanke seems to enjoy the airing of various views, it carries a sense of a uncoordinated team at the helm of monetary policy direction. Take a lesson from the Patriot’s coach Belichick — a united team spreads confidence in it’s the ability to accomplish a tough job.